We're buying more of one industrial-focused stock and booking some profits in another

We are making two trades Wednesday. Buying 100 shares of FedEx Freight at roughly $160 each; Jim Cramer's Charitable Trust will own 150 shares of FDXF, increasing its weighting in the portfolio to 0.6% from 0.2% Selling 75 shares of Dover at roughly $224; leaving the Trust with 285 shares of DOV, decreasing its weight in the portfolio to 1.6% from about 2% We're picking up more shares of FedEx Freight and funding the purchase with a Dover trim, consistent with what we said during Wednesday afternoon's June Monthly Meeting. FDXF mountain 2026-06-12 FedEx Freight performance since June 1 FedEx Freight started hot out of the gate after separating from FedEx on June 1. After closing at around $150 on its first official day of trading, shares of the largest less-than-truckload (LTL) carrier in North America traded as high as $188 on June 9. When it hit this level, we said on our HomeStretch that we would not chase it up here, so we downgraded our rating to a 2 and said we would wait for a pullback to add. Sure enough, the stock has pulled back more than 10% since we changed our rating, a downturn that's consistent with several other trucking stocks like Old Dominion Freight Line . With the FDXF trading at a much cheaper level, we are upgrading our rating back to a 1 and buying shares. We view Freight as an attractive self-help story and anticipate strong pricing and margin gains in the future as management optimizes its network to increase efficiency while adding higher-yielding customers to improve customer mix. DOV YTD mountain Dover YTD We're selling some Dover to fund this purchase. While Dover is a good company headed for another year of double-digit percentage earnings growth, we fear the stock lacks a catalyst to re-rate higher from its cheap price-to-earnings (P/E) multiple. What would change our view is thoughtful dealmaking that is accretive to earnings and adds more secular growth to Dover's eclectic portfolio of businesses. From this sale, we will realize an average gain of about 24% on stock purchased in August 2024. (Jim Cramer's Charitable Trust is long FDXF, DOV. 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.