We're trimming a data center stock that has rallied hard since we bought the dip

CNBC

15-05-2025

We are selling 25 shares of Eaton at roughly $328.51. Following the trade, Jim Cramer's Charitable Trust will own 350 shares of ETN, decreasing its weighting to 3.40% from 3.65%. We're locking in big gains in our position in Eaton following the electrical equipment maker's comeback over the past six weeks. As Eaton shares fell out of favor this year due to concerns about DeepSeek's impact on the data center market and general tariff-related uncertainty, we swooped in to capitalize. We picked up Eaton shares four separate times in 2025 — ranging from from $303 in January to $265 in early April . With shares trading at around $330 — up about 8% from our highest buy and 24% from our lowest buy — and now nearly flat on the year, we are lightening up on the position. We're also downgrading our rating to a hold-equivalent 2. Thursday's small sale follows the series of trims we've made this week out of discipline to the overbought market, according to the S & P Short Range Oscillator. We sold some Texas Roadhouse shares on Monday and Wells Fargo shares on Tuesday after their respective big runs. These sales more than offset our initiation of the energy equipment manufacturer GE Vernova , which we want to buy more of on weakness. From this sale, we will realize a gain of about 45% on Eaton stock purchased in November 2023. (Jim Cramer's Charitable Trust is long ETN, TXRH, WFC and GEV. 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. A construction crew works on a CloudHQ data center on July 17, 2024 in Ashburn, Virginia.