Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
NEW YORK (TheStreet) -- Best-of-breed stocks can go down, but they don't stay down. That was Jim Cramer's lesson to his "Mad Money" TV show viewers Tuesday as he highlighted a handful of companies where the bears got it wrong.
Cramer said that McDonald's (MCD) is one such best-of-breed name. After being one of the best-performing stocks in 2011, shares of the golden arches hit a wall earlier this year after the company reported disappointing results. After the analysts deserted the stock in droves, McDonald's was able to surprise to the upside Tuesday, but remains cheap at just 15 times earnings.Also on Cramer's best-of-breed list, handbag maker Coach (COH). Cramer said this stock got hammered from $62 a share to just $51 after the company missed earnings, but shares have since recovered. Likewise with shares of FedEx (FDX), a stock that slid only slightly on its reduced guidance, only to quickly reserve course. Cramer said examples like these can be found throughout the market. He said investors would be foolish to doubt companies like Celgene (CELG) or Allergan (AGN), both of which have proven themselves to shareholders over and over again. Even the venerable Starbucks (SBUX) has been beaten down, noted Cramer. "Who are we to doubt CEO Howard Schultz when he says he can turn things around?" asked Cramer. It would be smart to bet with Schultz, not against him, Cramer concluded.
Mr. StabilityIn a special interview, Cramer checked in with Tim Massad, the Treasury Assistant Secretary For Financial Stability, also known as the man in charge of liquidating the government's stake in companies such as American International Group (AIG). Earlier Tuesday it was announced that the U.S. Treasury sold $18 billion worth of AIG stock, taking the government's stake from a majority position to just 15.9%. In total, the government invested $182 billion in AIG's bailout package. With today's sale, the government has recovered $197 billion, for a profit of $15 billion, and it still owns another 234 million shares. Massad said that overall, the Treasury's Troubled Asset Relief Program has been a great success. He said the government acted with speed and force and, thanks to a range of actions, prevented the collapse of several industries.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV