The stock market is now way oversold. This is when we like to pounce. The market selloff accelerated on Thursday as U.S. crude prices surged roughly 8% to around mid-$90s per barrel on continued uncertainty about whether oil tankers would be able to pass through the Strait of Hormuz. Vowing retaliation for American and Israeli bombing, Iran’s new supreme leader said the Strait must remain closed as a “tool to pressure the enemy.” Wednesday’s market decline pushed the S & P Short Range Oscillator to minus-5.48% — well below the minus-4% threshold for an oversold market. Normally, we would buy stocks with the Oscillator this oversold and likely to become even more oversold. Unfortunately, the list of stocks we are able to trade Thursday is limited due to our trading restrictions. We cannot trade any stock Jim Cramer mentions on television for three days. Our hands may be tied. But we always want to tell Club members what we would be doing if we could. That’s why, after discussions with Jim, we are providing a shopping list of stocks that we would consider buying if not restricted. With this list, we are not saying to run out and buy them all at once right here. Yes, the Oscillator is oversold, but if this conflict persists and oil prices continue to climb well into the $100s, the stock market selloff will deepen, and it would not be unusual to see the Oscillator fall below 10%. It’s rare, but it’s actually happened 13 times in the past 18 years, including April 2025 (around tariff “liberation day”) and September 2022 (on inflation and Fed rate hike worries coming out of Covid). If the Oscillator were to reach this level of oversold in the current environment, it would be a sign of maximum pain and a historically great time to buy for those willing to hold their nose. (If there is any bit of good news around de-escalating tensions with Iran and a drop in oil prices, the market would most likely rally significantly.) Knowing that this stock selloff could continue if oil fails to stabilize, we would pick one or two stocks from this list and buy small. Gradual buys preserve flexibility if the market declines further. Also, we would advise members to keep some powder dry because pullbacks in other stocks will create more buying opportunities. For Thursday, there are five stocks we are interested in buying more of: Boeing, Alphabet, Goldman Sachs, Nike, and Cardinal Health. The concern with Boeing right now isn’t only about the wiring issue it announced the other day. The bear thesis is that if fuel prices continue to rise due to oil spikes and begin to erode travel demand, airlines may become less inclined to take delivery of new Boeing jets. But let’s remember that Boeing’s new jets are also significantly more fuel efficient than older generations, making them well worth the purchase over time. Alphabet has been a position we’ve been building up all year, and we’ll continue to do so on volatility because of the hyperscalers, it has been the best at monetizing its AI investments. The financials are the worst performing sector this year, but Goldman Sachs is now the cheapest it’s traded on a price to earnings basis in years — at less than 14 times its estimated next 12 months of earnings per share. Our trading restrictions have prevented us from buying back any of the shares we sold at higher prices in December and January , but it’s still in our game plan. Nike is one you have to take a leap of faith in CEO Elliott Hill’s turnaround, but we agree with the upgrade by Barclays on Wednesday that sentiment is too negative give the improvements in North America. Keep in mind the company reports at the end of March, so any new buyers will want to leave room for after the quarter, just in case management lowers estimates again. One final stock we are not restricted in, but we would wait for a down session to buy more shares is Cardinal Health . Recession-resistant stocks haven’t worked exactly as we thought they would during the conflict, but we think a quality defensive growth name like Cardinal Health that isn’t linked to the global economy will be recognized over time. To be sure, with the market moving sharply since the Iran war started, there is no guarantee we will make these trades when we are unrestricted in the days and weeks to come, as prices down the line may not warrant buys. And, as always, we’re scanning the broader market for potential additions outside of the portfolio. (Jim Cramer’s Charitable Trust is long BA, GOOGL, GS, NKE, CAH. 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.
Here’s a shopping list of 5 stocks to buy in this sharply oversold market
