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Jim Cramer's Stop Trading: Sticking With Value Stocks

NEW YORK (TheStreet) -- On CNBC's "Cramer's Stop Trading" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said that as interest rates move higher, investors tend to gravitate toward big industrial stocks, such at Caterpillar (CAT - Get Report) and Cisco Systems (CSCO - Get Report) -- the latter of which he acknowledged is not an industrial stock, but goes higher nonetheless. 

High growth stocks, such at Salesforce.com (CRM - Get Report), FireEye (FEYE) and Tableau Software (DATA) tend to do better in a falling-rate environment. However, these stocks have found some buying support in Tuesday's morning trading session. 

"Can these stocks exist in an environment where rates are actually going higher?" Cramer asked. 

Investors have been ignoring Salesforce.com's "bountiful" operating cash-flow and solid orders growth, as the name has been leading the way lower for momentum stocks since February, he said. 

Cramer acknowledged CRM's importance to the momentum stocks, but he is sticking with value for now, concluding, "I happen to like the companies that sell at a discount to the market multiple, with a 3% yield and a big buyback."

-- Written by Bret Kenwell in Petoskey, Mich.

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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SYM TRADE IT LAST %CHG
CAT $84.60 1.58%
CRM $66.90 1.66%
CSCO $28.48 2.02%
AAPL $127.60 2.28%
FB $83.09 2.87%

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