We’re buying 50 shares of Cardinal Health at roughly $214 each. Following Wednesday’s trade, Jim Cramer’s Charitable Trust will own 450 shares of CAH, increasing its weighting in the portfolio to 2.55% from 2.27%. Since the conflict in the Middle East began, energy prices and stocks have had an inverse relationship. ( Tuesday’s session was the rare exception .) As oil prices rise, stocks sell off on concerns about a potential inflation spike and energy costs pressuring the economy. Relief in energy prices brings back the buyers. After a few calm days, oil was back on the move higher on Wednesday, with Brent international crude pacing for its highest settle since July 2022 and West Texas Intermediate crude around $100 per barrel. The tension continued with the S & P 500 down more than 0.5%. Uncertainty about the next phase of the Iran war remains, but we’re putting more cash to work as the S & P Short Range Oscillator momentum indicator stays technically oversold at minus-5.18%, still comfortably below the minus-4% threshold. When the market is this oversold, we generally hold our nose and make a few gradual buys out of recognition that the market has been under pressure and could rebound on any bit of good news. ( We have already made a couple of buys this week and a couple last week.) A stock we have bought several times since the breakout of the war is Cardinal Health, and we’re adding to our position again Wednesday. The drug distributor generates nearly 100% of its revenue within the United States, making it immune to geopolitical tensions overseas. Additionally, Cardinal Health management told analysts at Leerink last week that the recent commodity spike will be immaterial to its fiscal year 2026 earnings. The company’s insulation from the war is why we’ve been building up our position on weakness, though we made the mistake of starting a little too early. CAH YTD mountain Cardinal Health YTD Health care is the second-worst-performing sector in the market this month, contrary to the thesis that defensive groups should fare better when investors are worried about geopolitical tensions impacting economic growth. Sentiment in the drug distributor group has soured after not one, but two finance chiefs in the group announced their retirement. First, it was McKesson ‘s CFO on March 5 and then Cencora ‘s CFO on March 17. We think this is more of a coincidence than a red flag. Cencora reaffirmed its full-year earnings per share (EPS) adjusted guidance range on Tuesday, along with the CFO announcement, easing concerns of an impending shortfall. (Jim Cramer’s Charitable Trust is long CAH. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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