With shares down 20% since July, we're adding to our position in this medical equipment firm

Published Wed, Nov 1 20239:08 AM EDT

Shortly after the opening bell Wednesday, we will be buying 75 shares of GE HealthCare Technologies (GEHC), at roughly $66.17 apiece. Following the trade, Jim Cramer's Charitable Trust will own 1,245 shares of GEHC, increasing its weighting in the portfolio to 3.06% from 2.88%. With U.S. equities down in premarket trading Wednesday and the S & P 500 Short Range Oscillator still highly oversold, at minus 5.36%, we are putting money to work on the expectation the market could soon bounce. And we're targeting the stocks of companies that have already reported solid quarters this earnings season, but have pulled back from recent highs due to the broader market sell-off. GE HealthCare Technologies is a prime example. The medical equipment maker on Tuesday reported strong third-quarter results , beating expectations on revenue and earnings with solid margin expansion. The stock soared more than 5% on the news, but is still down roughly 20% since July. The big surprise in the earnings report was GE HealthCare's resilience in China, amid concerns about an anti-corruption campaign targeting the country's health-care industry. But both revenues and orders increased year-over-year in China, easing investor concerns. The company also told a compelling story around expected margin expansion due to a raft of new product introductions, including those integrated with artificial intelligence that command a much higher price point relative to legacy offerings. We also think the market is still underappreciating how well the company is positioned to benefit from the rollout of new Alzheimer's treatments, which require brain scans provided by GE HealthCare's technology. As margins expand over time, the stock should command a higher price-to-earnings multiple from the roughly 15-times to 16-times it trades at today, bolstering our decision to build out our position. (Jim Cramer's Charitable Trust is long GEHC. 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.

Cat scan machine.

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