This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

Why Microsoft? Cramer said because the markets hate high growth at the moment, and Microsoft is a safe, low-growth, low-PE name with a new CEO and new "cloud and mobile first" strategy that seems to be in fashion. Microsoft also affords investors a dividend cushion of safety on big down days like Friday.

The polar opposite of Microsoft is Twitter, a cool, hip company with no dividend and no earnings either. Twitter is insanely expensive, Cramer said, which is why the pain in this stock, as well as the many other high-fliers, is not over yet.

So if investors are looking for the keys to the market, Cramer concluded Microsoft and Twitter currently embody the yin and yang of investor sentiment.

Best for Your Buck Finale

For the final installment of his "Best For Your Buck" series, Cramer offered his pick for the best stock with a share price less than $10. That stock is drugstore chain Rite-Aid (RAD - Get Report).

Must Read: Jim Cramer's 'Mad Money' Recap: What's Going on Here?

Cramer explained that shares of Rite-Aid are up 30% so far this year and have nearly doubled since he featured the stock in August of last year. The company just reported a two-cents-a-share earnings beat with better-than-expected revenue.

While this stock was all but left for dead last year, Cramer said this year the company has many tailwinds including the Affordable Care Act, which has created 14 million potential new customers with insurance. The U.S. population continues to trend older, he continued, and many brand-name drugs are coming off-patent, helping to boost Rite-Aid's margins.

But all those trends benefit all drugstores, Cramer said. Specific to Rite-Aid is the company's new store format, which now accounts for a quarter of its locations, as well as an uptick in flu shots, which helps get customers into those locations.

Trading at just 15 times earnings, less than its peers, Cramer said it's easy to see why this is the stock to own at this price point.

Cramer's Playbook

In his "Cramer's Playbook" segment, Cramer answered the question of what price-earnings, or P/E, ratio investors should be looking for in the stocks they buy.

Cramer said that investors should never just consider a stock's share price when making an investment decision. He said the P/E ratio, which is the share price divided by a company's expected earnings, is a much better metric to use.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MSFT $50.61 1.48%
RAD $8.04 -0.12%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs