The Jim Cramer’s Charitable Trust recently purchased 50 shares of Estee Lauder at approximately $134.50, increasing its weighting in the company to 2.2%. Recent data from China has provided some optimism regarding this investment, including an increase in the consumer price index in April and positive comments from Alibaba’s Executive Chairman Joe Tsai about consumer spending on discretionary items. Despite a 13% drop in Estee Lauder’s stock price following its quarterly report on May 1, the company reported strong earnings and may have given conservative guidance. With improvements in margins and normalization of inventories, Estee Lauder’s market share in the United States is expected to improve, especially with the launch of Clinique on Amazon. Although the company’s exposure to the Chinese market adds volatility to the position, confidence is growing at lower price levels.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts 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 discussed a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. It is important to note that the information provided in connection with the Investing Club is subject to terms and conditions, privacy policy, and a disclaimer. There is no fiduciary duty or obligation created by receiving information from the club, and there is no guarantee of a specific outcome or profit.
The decision to purchase shares of Estee Lauder was influenced by positive data points from China, including an increase in the consumer price index and signs of growth in consumer confidence, as mentioned during Alibaba’s earnings call. Despite a significant drop in Estee Lauder’s stock price following its quarterly report, the company reported strong earnings and may have given conservative guidance. Improvements in margins and normalization of inventories are expected to boost the company’s market share in the United States, especially with the launch of Clinique on Amazon. Although the company’s exposure to the Chinese market adds volatility to the position, confidence is growing at lower price levels.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade, with a waiting period of 45 minutes before buying or selling a stock in his charitable trust’s portfolio. If Jim has discussed a stock on CNBC TV, a 72-hour waiting period is implemented before executing the trade. It is important to be aware of the terms and conditions, privacy policy, and disclaimer associated with the information provided by the Investing Club. There is no fiduciary duty or obligation created by receiving information from the club, and there is no guarantee of a specific outcome or profit.
The purchase of 50 shares of Estee Lauder by Jim Cramer’s Charitable Trust at around $134.50 has increased its weighting in the company to 2.2%. Recent data from China, such as the rise in the consumer price index and positive comments from Alibaba’s Executive Chairman Joe Tsai, have contributed to the decision to invest in Estee Lauder. Despite a significant drop in the company’s stock price following its quarterly report, there are reasons for optimism, including stronger-than-expected earnings and potential growth opportunities. Improvements in margins and inventory normalization are expected to benefit Estee Lauder’s market share in the United States, particularly with the introduction of Clinique on Amazon. Although the company’s exposure to the Chinese market adds risk and volatility, confidence is growing at lower price levels.
