We're buying more shares of an underappreciated insurer and upgrading one of our chip makers

Published Thu, Apr 28 202212:36 PM EDTUpdated Thu, Apr 28 202212:44 PM EDT

We're buying 20 shares of Humana (HUM) at roughly $451 each. Following Thursday's trade, the portfolio will own 210 shares of Humana, increasing its weighting to about 3.03 % from 2.75%. We're picking up more shares of Humana. The company reported a fantastic quarterly beat and raise on Wednesday. We think the stock is still being underappreciated by the market. Not only that, management's commentary around the visibility into its $1 billion value creating plan left us even more confident that they will right the ship and accelerate Medicare Advantage growth next year. Shares of Humana rose more than 1.5% in Thursday trading but remained 3% lower for the year. We encourage the Club to watch Thursday morning's insightful interview with Qualcomm CEO Cristiano Amon, who joined us on the "Morning Meeting" to break down the company's results and outlook for the mobile handset and automotive markets. With the company proving that it can grow through a soft patch in the handset market and conviction in the autos increasing, we continue to believe the stock trading at 11x earnings is too cheap. We are upgrading our rating to a 1 , and we'll look to add to our position when we are not restricted from trading it. Qualcomm shares were up 7% in Thursday trading but still down about 21% for the year. (Jim Cramer's Charitable Trust is long HUM and QCOM. 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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Lucas Jackson | Reuters