Cramer: I’m buying Disney shares today, and here’s why

Published Fri, Feb 11 202211:46 AM ESTUpdated Fri, Feb 11 20221:02 PM EST

We're making a couple of stock moves in the portfolio and upgrading our rating on another, as we discussed in Friday's Morning Meeting video livestream, which you can watch on-demand here . We're buying 75 shares of Disney (DIS) at roughly $153.82 and selling 150 shares of Nucor (NUE) at roughly $121.61. Following the trades, we will own 800 shares of Disney and 500 shares of Nucor in the portfolio. Disney's weighting will increase to about 3.01% from 2.76%, while Nucor's will decline to 1.5% from 1.95%. We are adding to our Disney position and believe shares should have moved even higher after Wednesday night's blockbuster earnings. Read our earnings take here . Disney's operating leverage at its theme parks is incredible right now, with profits higher than pre-Covid pandemic levels, despite attendance still below 2019. We also expect the streaming growth story to pick up later this year as the company's robust content slate hits Disney+. Shares of Disney may have had a big move to the upside this week, but we don't think they're done going higher. The stock is still down about 23% from its high. We're making another trim in our Nucor position as the stock price of this leading steel producer has increased roughly $7 since our sale on Tuesday . The latest rally stretches Nucor's year-to-date gains to about 6% compared to the roughly 5% drop in the S & P 500 . We'll take that outperformance any day of the week. Although we continue to believe that the steel cycle could be a multi-year story and Nucor's robust capital return program/aggressive buyback are favorable in a market worried about higher rates, we don't want to let ourselves get too greedy here. We know NUE to be a volatile position, prone to big swings in the market. We'll gladly book profits while the stock is making a run towards its highs, and then revisit buying should begin to falter. This NUE sale will lock in a gain of about 15% on shares we purchased in June 2021. We are also upgrading our Linde (LIN) rating to a 1. Shares of this industrial gas giant are lower Friday and have given up most of their gain since reporting a much better than anticipated fourth quarter and providing a 2022 outlook that looked resilient against pressures from higher energy costs in Europe thanks to the company's ability to pass thru costs and execute on margins. Read our take on the quarter here . With shares back near $300 and about 15% off its high, we think the current price represents a solid level to get more opportunistic in this high-quality name. Linde's management team is currently outexecuting its peers, and we think the stock could get a boost in a couple of weeks after the Board approves a new share repurchase program. After the trade is booked, you can find the full sale details by checking out our closed lot tab on our Charitable Trust page. (Jim Cramer's Charitable Trust is long NUE and DIS. See here for a full list of the stocks. Check out our story explaining the Club's rating system.) 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.

Stephanie Beatriz voices Mirabel Madrigal in Disney's "Encanto."

Disney

We're making a couple of stock moves in the portfolio and upgrading our rating on another, as we discussed in Friday's Morning Meeting video livestream, which you can watch on-demand here.

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