Jim Cramer's 'Mad Money' Recap: These Stocks Rose Despite Bad Earnings

When the markets are looking for value, not even a bad quarter will get in their way, Cramer says.
By Scott Rutt ,

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When is bad not bad enough? Jim Cramer told his Mad Money viewers Tuesday that when the markets are looking for value, not even a bad quarter will get in their way.

That was certainly the case with Emerson Electric (EMR) - Get Report , which saw sales slump 9% and offered investors little hope for improvement going into 2016. That negativity was lost on investors, however, who saw value and sent shares up a quick 2.6%.

Similar patterns emerged with other industrial names when they reported. Eaton (ETN) - Get Report , Caterpillar (CAT) - Get Report and DuPont (DD) - Get Report all saw their shares rally despite disappointing results.

It's not just the industrials, Cramer noted. The banks, including Goldman Sachs (GS) - Get Report and JPMorgan Chase (JPM) - Get Report , and many in the oil patch, including Schlumberger (SLB) - Get Report and most recently Pioneer Natural Resources (PXD) - Get Report , are all on the move as investors have decided that all of the bad news is now baked into the share price.

Executive Decision: Greg Silvers

For his "Executive Decision" segment, Cramer sat down with Greg Silvers, president and CEO of EPR Properties (EPR) - Get Report , an entertainment and recreation real estate investment trust with a 6.3% yield and shares that are flat for the year.

Silvers explained EPR has a unique model that allows for growth even in a rising interest rate environment. Because of that, EPR expects to be able to continue raising its dividend in line with earnings. EPR has currently been increasing distributions by 7% every year.

Silvers also commented on one of its tenants, Topgolf, which offers a high-tech driving range experience that, unlike traditional golf courses, is approachable and affordable to everyone. Some of EPR's other tenants include charter schools and movie theaters, both of which continue to do well no matter the economic or political environment.

Cramer remains bullish on EPR.

Cramer Loves FitBit

Even with shares falling 8.5% after reporting a strong quarter, Cramer said he's still a big fan of Fitbit (FIT) - Get Report .

Cramer said Fitbit is more than just a fitness tracker, it's an entire wellness ecosystem that's attracting customers and keeping them stuck to their daily goals. That's how the company is able to command an 88% market share.

The company reported that its first-mover advantage is keeping competitors at bay and even the Apple (AAPL) - Get Report Watch doesn't seem to be making inroads. Cramer owns shares of Apple for his charitable trust, Action Alerts PLUS.

So why the 8.5% decline in its shares? The company indicated that it's all part of the normal "change of ownership" that newly public companies go through as venture capital exits and institutional investors take their place.

Cramer called Fitbit the "real deal" and said to own for a trade or an investment.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Bob Lang over the charts of the media stocks after Walt Disney (DIS) - Get Report shook up the group last quarter by signaling weakness in its cable properties.

According to Lang, the media stocks are now red-hot with beautiful charts. He noted that the daily chart of Disney displays a strong rally since those August lows with a higher low made in October. He also noted the MACD momentum indicator signaled a buy in late-September and the stock is approaching a golden cross, where the 50-day crosses over the 200-day moving average.

Lang gave the most kudos to CBS (CBS) - Get Report , however, calling it his favorite in the group. CBS completed its golden cross in October and the Chaikin money flow indicates the big investors continue to pile into this stock.

Lang also saw another leg up in Netflix (NFLX) - Get Report , which also displays strong MACD and Chaikin indicators.

Lightning Round

In the Lightning Round, Cramer was bullish on GameStop (GME) - Get Report , Bristol-Myers Squibb (BMY) - Get Report , Home Depot (HD) - Get Report , Bank of America (BAC) - Get Report , Southwest Airlines (LUV) - Get Report , Delta Air Lines (DAL) - Get Report and Macy's (M) - Get Report .

Cramer was bearish on Best Buy (BBY) - Get ReportLumber Liquidators (LL) - Get Report , New York Community Bancorp (NYCB) - Get Report and J.C. Penney (JCP) - Get Report .

Executive Decision: Spencer Rascoff

In his second "Executive Decision" segment, Cramer also sat down with Spencer Rascoff, CEO of Zillow (Z) - Get Report , the online real estate kingpin.

Rascoff explained that there may be some confusion regarding Zillow's guidance because the company sold a division called Market Leader this quarter. He said many estimates still include Market Leader, but the guidance they providing is right in line with those estimates, only excluding the sale.

Rascoff continued that Zillow plans to grow in 2016 faster than it did in 2015 and his company has 50% to 70% markets hare for online home shopping, but only 5% of what real estate agents spend on advertising thus far.

When asked about the real estate market overall, Rascoff said the company sees strong markets in San Francisco and Dallas, where job growth is high, and soft markets in Philadelphia and Baltimore, where job growth is weak.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and BAC.

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