Jim Cramer’s Investing Club Adds to FedEx Position Ahead of Holiday Season

Jim Cramer’s Charitable Trust has increased its stake in FedEx by purchasing an additional 20 shares at approximately $289 per share. The move raises the trust’s total holding to 410 shares of FDX, pushing its portfolio weighting to 2.98%, up from 2.84%.

This transaction marks the second buy of the day for the Investing Club, following an earlier purchase of Kimberly-Clark shares on Thursday. According to Cramer, the strategy involves being selective rather than deploying cash rapidly, aiming to capitalize on solid companies trading at reasonable prices despite expected market volatility leading up to the midterm elections.

While the stock market rally has largely been driven by the AI sector, signs suggest momentum is broadening into other industries. Cramer noted that a recent Financial Times report indicating OpenAI’s revenue run rate may be closer to $50 billion—roughly $20 billion less than prior estimates—could encourage investors to take profits in tech and rotate funds into undervalued non-tech names.

The decision to add to the FedEx position comes as the stock trades below the trust’s original cost basis. The shares previously bottomed out at $280 before consolidating near current levels. Cramer cited headwinds such as inflation and elevated oil prices as drivers for the recent weakness, but views the dip as an opportunity to accumulate shares ahead of the critical holiday shipping season.

Analysts believe FedEx is well-positioned to outperform rival UPS. Furthermore, Cramer anticipates further upside in the stock once oil prices decline. While FedEx can shield profits through fuel surcharges, higher shipping costs can suppress overall demand. Investors are looking for positive developments, particularly an end to the conflict in Iran and the reopening of the Strait of Hormuz, to drive energy prices lower and boost the logistics sector.