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We're Putting Cash to Work by Buying More of These Two Holdings

Our focus remains on the medium- to longer-term tailwinds for data center and AI adoption.

Chris Versace·Dec 19, 2024, 10:15 AM EST

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SymbolTransaction Type# Shares TradedRecent Price $Shares Owned After Trade% Portfolio

ETN

Buy

75

$339.50

435

3.0%

NOW

Buy

31

$1,068

97

2.1%

After you receive this alert, we will make the following trades:

  • Buy 75 shares of Eaton Corp. ETN at or near $339.50. Following the trade, the Portfolio will own 435 ETN shares, roughly 3.0% of the Portfolio.
  • Buy 31 shares of ServiceNow NOW at or near $1,068. Following the trade, the Portfolio will own 97 NOW shares, roughly 2.1% of the Portfolio.

Following our opening comments, we are making some selective moves this morning as we pick up more shares of Eaton and ServiceNow for the Portfolio. 

With Eaton, we continue to see a growing pain point between the data center market expansion and the need to power it. With ServiceNow, enterprise adoption of AI is continuing, and we are seeing signs of adoption across industries and government entities.

In our opening comments, we shared that, subject to the outcome of Friday morning’s November PCE data and the incremental clarity it may bring, we may make a few additional moves with the Portfolio. Any such moves are likely to include existing Portfolio positions, but we will be paying attention to potential opportunities in the Bullpen as well.

Following today’s moves, the Portfolio’s position in NOW shares is larger but at 2.1% of the Portfolio, so it remains one of the smaller ones. Because we are still in the early innings of AI adoption, we will continue to look for prudent opportunities to pick up additional NOW shares.

We would also remind folks, that our plan to work our way out of Four-rated PepsiCo PEP shares still stands. As we discussed on Wednesday, the mismatch in the Fed’s inflation outlook for headline versus core PCE in 2025 compared to 2024 only reaffirms our thoughts on using near-term market strength to close out that position.

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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to click on Closed Trade Gain/Loss and toggle the chart to sort by Purchase Date.)

At the time of publication, TheStreet Pro Portfolio was long ETN, NOW and PEP.