Adding to Waste Management

After you receive this Alert, we will be buying 100 shares of Waste Management (WM) at roughly $111.32. Following the trade, WM (550 shares) will represent 2.16% of the portfolio.

Markets are lower Tuesday and we will use this weakness to continue our slow scale deeper into one of our newer positions. As we laid out in our initiation Alert here, we are bullish on WM as a play on the recovery in construction markets and especially in housing, which should continue to pick up from pent-up demand, low mortgage rates and a de-urbanization trend. There is also an acquisition catalyst here that we think will be immediately accretive to earnings and will help Waste Management increase its footprint in the eastern half of the United States. And it is always nice to get paid as you wait with WM's ~2% dividend yield.

In addition, we would be nibbling on more DuPont (DD) shares if we were not restricted from trading. Analysts at Citi increased their DD price target to $68 from $52 this morning and called out some important takeaways after a meeting with management. Citi thinks company specific events like a recovery in auto and construction markets, better execution under CEO Ed Breen (who takes over the role after a period of underperformance), and a possible PFAS liability resolution could send shares higher. We agree with these points and we would take advantage of weakness to scale deeper into this position. For more information about our trading restrictions, please see our Alert here.

Lastly, we note Seattle Genetics (SGEN) will be presenting at the Goldman Sachs Healthcare conference Tuesday morning. The webcast begins at 11:20 a.m. and you can watch it here. We know Goldman Sachs is a big believer of SGEN - the analysts added it to their "Conviction Buy list" with a $264 price target in late May (we called this out here and we expect it will be an upbeat presentation.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long WM, DD, SGEN.