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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 - Get Report) 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 - Get Report). 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 - Get Report), 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.