We're adding to our position in this life sciences firm with the market highly oversold

Published Tue, Aug 22 20239:37 AM EDT

We are buying 25 shares of Danaher (DHR), at roughly $250.48 apiece. Following Tuesday's trade, Jim Cramer's Charitable Trust will be own 520 shares of DHR, increasing its weighting in the portfolio to 4.58% from 4.37%. Our purchase of additional shares of the life-sciences-and-medical-diagnostics firm Danaher (DHR) on Tuesday is on the smaller side because we are hesitant to put too much money to work in a volatile market. That said, we are sticking to our discipline because the S & P 500 Short Range Oscillator closed out Monday at minus 6.19%, indicating the market has moved into very oversold territory. Whenever this technical indicator reaches this level, our discipline is to gradually buy up solid stocks. Even though it's possible that stocks could continue to trend lower and the Oscillator becomes more oversold from here, the metric is a reminder that equities are on sale and it's time to gradually add to our positions. Danaher was one of five stocks that Jim Cramer last week said he would buy into recent weakness. The others were DuPont de Nemours (DD), Honeywell (HON), GE HealthCare (GEHC), and Stanley Black & Decker (SWK) – and we've been buying all of these names over the past week. Our approach amid the August pullback has been to purchase high-quality companies that have reported strong quarters and provided positive forward guidance this earnings season. Danaher is a slight deviation from the plan because the company reported only a modest earnings beat and slightly cut its full-year outlook due to ongoing weakness in the bioprocessing market. However, the stock was able to overcome the guidance cut because management suggested that the industry has finally started to bottom. And with Danaher on track to separate its environmental and applied solutions business later this year, we are looking forward to a breakup catalyst for the stock. (Jim Cramer's Charitable Trust is long DHR, DD, HON, GEHC, SWK. 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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