We're adding to this oil stock, plus an update on one of our retail names

Published Fri, May 19 20239:29 AM EDTUpdated Fri, May 19 202310:21 AM EDT

We're buying 25 shares of Pioneer Natural Resources (PXD) at roughly $205.11. Following Friday's trade, Jim Cramer's Charitable Trust will own 275 shares of PXD, increasing its weight to 2.08% from 1.89%. Pioneer Natural Resources buy We're adding to our Pioneer position Friday morning because we think oil can make a stand here in the low $70s. We're starting to see more news that Russia is no longer flooding the world with cheap oil and cutting back on production, which could lift prices in the future. PXD YTD mountain Pioneer Natural Resources (PXD) YTD performance Pioneer is our "oily" energy play with some of the lowest all-in costs and highest quality of assets in the Permian basin. The stock pays out a healthy annual dividend yield of about 6.55% and management has recently become more interested in share repurchases instead of paying out variable dividends to create long-term shareholder value. Foot Locker update We also want to provide an update on Foot Locker (FL). Shares of this footwear and athletic apparel retailer are down roughly 25% after reporting disappointing results and cutting its full-year outlook. We said multiple times that this was a turnaround story, and it will take time for CEO Mary Dillon's plan to take shape. It's why we kept this position small, like a placeholder. We said this wouldn't be the quarter for Foot Locker's turn, but we also didn't think the results would be this bad and that Dillon would absolutely tank it. She bought stock shortly after the company's investor day in March, a sign of confidence and optimism in her plan. Clearly things got worse after that: The company said sales softened "meaningfully" due to the challenging microenvironment, leading to more aggressive markdowns and a significant cut to full-year guidance. FL YTD mountain Foot Locker (FL) YTD performance So what to do now? We want to listen to what Dillon has to say when the conference call starts at 9 a.m. ET because this looks like a "kitchen sink" quarter. When go back over Dillon's time at Ulta Beauty (ULTA), which lasted from July 2013 until June 2021, the stock went through a similar setback on softer trends early on in her tenure. On Dec. 6, 2013, Ultra shares fell 20.5% to $93.76 from $118 after reporting a soft quarter and lowering guidance. Ulta reported earnings of $0.70 per share, missing guidance of $0.71 to $0.74. The company's outlook for the next quarter was also weaker than expected at $1.07 to $1.10, below expectations of $1.24. While the drop was painful for Ulta shareholders at the time, the stock never looked back. We've kept our position in FL small since our March initiation for good reason. Now, we want to hear what Dillon has to say about trends before buying more shares. But we do not believe this quarter was an indictment on her strategy. And for that reason, we are sticking by it for now. (Jim Cramer's Charitable Trust is long PXD and FL. 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 derrick man secures a length of drill pipe during drilling on a natural gas drill rig near Montrose, Pennsylvania, U.S., on Monday, April 5, 2010.

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