We're buying this industrial on weakness, plus 2 other trades we'd like to make
Investment
CNBC

We're buying this industrial on weakness, plus 2 other trades we'd like to make

Why This Matters

The market hasn't come around to our bullish view on this stock just yet.

July 30, 2025
04:37 PM
3 min read
AI Enhanced

We are buying 30 s of Dover at roughly $183. ing the trade, Jim Cramer's Charitable Trust will own 720 s of DOV, increasing its weighting to 3.6% from 3.44%.

With Wednesday's slight losses, Dover has pulled back 4% since the company reported a better-than-expected second quarter and raised its full-year outlook last Thursday.

Although the market has yet to come around to our more bullish view, we see the lack of positive reaction to Dover's results as a buying opportunity.

The quarter wasn't perfect and one could argue 1% organic growth is sluggish in an environment where industrials tied to more secular themes aerospace, electrification, and power generation — think Eaton and GE Vernova — are growing much faster.

Still, the results checked off a bunch of positive boxes. Adjusted segment EBITDA hit a company record 25.1%, and the sales setup into the back half of the year are mising thanks to 7% bookings growth.

Another aspect we d was Dover accelerating its growth and ductivity investments to support long-term growth.

Dover is also a cheap stock versus its peers, and yet this management team has a strong track record of dering 9% to 10% adjusted earnings per growth and deserves more credit for its capital deployment into faster growing, high-margin es.

Here are two other moves we'd make if we were not restricted: We would be buyers of Starbucks on its post-earnings softness because of the momentum in CEO Brian Niccol's turnaround strategy.

We view the sell-off in Palo Alto Networks on the news of its acquisition of CyberArk as a buying opportunity. The strategic rationale behind this $25 billion deal makes a lot of sense.

It gives Palo Alto Network's leadership in a highly fragmented market and the cross-selling opportunities here are significant, considering it has 70,000 customers compared to CyberArk's 8,000.

We are upgrading our rating on Palo Alto s to a 1. (Jim Cramer's Charitable Trust is long DOV.

See here for a full list of the stocks.) As a r to the CNBC 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 a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade.

THE ABOVE 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 VIDED IN CONNECTION WITH THE . NO SPECIFIC OUTCOME OR FIT IS GUARANTEED.

FinancialBooklet Analysis

AI-powered insights based on this specific article

Key Insights

  • Earnings performance can signal broader sector health and future investment opportunities
  • Merger activity often signals industry consolidation and potential valuation re-rating for similar companies

Questions to Consider

  • Could this earnings performance indicate broader sector trends or company-specific factors?
  • Does this M&A activity signal industry consolidation or strategic repositioning?

Stay Ahead of the Market

Get weekly insights into market shifts, investment opportunities, and financial analysis delivered to your inbox.

No spam, unsubscribe anytime