Investing Club: We added to one of our retail stocks in Monday's sell-off when it hit our levels

Published Mon, Feb 28 20223:07 PM EST

We're making one small buy into Monday's selloff. We're buying 100 shares of Walmart (WMT) at roughly $133.98. Following the trade, the portfolio will own 475 shares of Walmart. This buy will increase Walmart's weighting in the portfolio to about 1.63% from 1.29%. We will also upgrade our WMT rating to a 1 , meaning this is a stock we would buy right here. After holding off from buying in Monday's rocky session, we are making a move on Walmart now that shares have entered into our roughly $133 buy zone that we discussed Friday in our rapid fire update on all the stocks in our portfolio. (At the time this was written, WMT shares were trading slightly below $134 each.) The significance of our $133 level is two-fold. First, we can slightly improve our $137.65 average cost basis, which is meaningful to us because we never way to pay up for a stock and violate our discipline. Secondly, at this level the stock has washed away all of the gains related to the company's strong fourth-quarter earnings report . Not only did Walmart report a great quarter, management also gave solid guidance for the year, boosted the dividend and announced a repurchase share program of at least $10 billion. Importantly in our view, it also disclosed that their fast-growing, high margin advertising business reached $2.1 billion in size. With 78% of the Walmart's revenues coming from inside United States, we think any decline based on the unfortunate events in Europe represents a long-term buying opportunity. (Jim Cramer's Charitable Trust is long WMT. 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.

A woman pushes shopping carts during a sales event on Thanksgiving day at Walmart in Westbury, New York, November 28, 2019.

Shannon Stapleton | Reuters

We're making one small buy into Monday's selloff.