After another bumpy day on Wall Street, investor patience is growing thin. But perhaps we should view the glass as half-full rather than half-empty -- at least when it comes to some of America's favorite (or least favorite, depending on the day) stocks, Jim Cramer told his audience Tuesday night on Mad Money.
That's right, Cramer's talking about FAANG, his acronym for Facebook, Amazon, Apple, Netflix and Alphabet/Google.
Staring with Facebook (FB) , he readily stated that investors don't have to like the company to acknowledge that it and its Instagram property are still the best way for advertisers to reach young people.
The stock continues to hang around the same levels that it was trading near before it reported what turned out to be a pretty good quarter, he noted. Further, estimates continue to come down. If Facebook would just hire one "grownup" from outside the company, Cramer said, he believes the stock will rally.
Amazon (AMZN) is on the verge of having its best holiday quarter ever and it remains dominate in cloud, advertising and online retail, Cramer reasoned.
Apple (AAPL) trades at 14.5 times this year's earnings, but is down more than $40 from its highs with no sign of stabilizing. Everyone is worried about iPhone estimates now that the company is no longer providing unit sales in its quarterly reports. But Cramer stressed that while investors panic over analysts cutting their iPhone estimates, they continue to ignore positive news like its momentum in Services sales or Apple's move to sell iPads and iPhones on Amazon.
Apple may not have bottomed yet, but investors are going to kick themselves for selling it and not simply owning it, Cramer argued.
Netflix (NFLX) is a tough one, because it's still up 53% on the year and couldn't rally despite a great earnings result. That said, it's a great company that still has a few levers it could pull, one of which is raising prices, Cramer said.
Finally there's Alphabet (GOOGL) , a stock that's in a lull despite its temping valuation and treasure chest of cash. Like Apple, investors are seemingly ignoring the good and concentrating on the bad, and those who sell are going to regret it.
These stocks are important components to the market and investors shouldn't be so quick to write them off -- not after this type of selloff, Cramer said. In fact, maybe it's time to start buying a little bit, rather than selling, he added.
In today's Daily Rundown, Cramer and the AAP team talk about the energy market, Comcast (CMCSA) , Apple, and more. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Executive Decision: Zebra Technologies
In an "Executive Decision" segment, Cramer sat down with Anders Gustafsson, CEO of Zebra Technologies Corp. (ZBRA) .
The company recently purchased Xplore Technologies for $66 million. Gustafsson explained that the company can use this acquisition to fuel its growth and further the integration of its solutions.
Zebra provides solutions for data capturing and automatic identification and is used in everything from sports and retail to healthcare.
From a macro economic perspective, the global economy is doing well and that's helping to drive Zebra's cyclical businesses, Gustafsson explained. However, the company has built out many secular businesses that are well positioned, too.
He said the company's products improve efficiency by increasing speed and decreasing mistakes, saving companies money. For example, nurses have quick access to critical information, while retailers who are building out an omni-channel presence have an easier transition thanks to Zebra's solutions.
As for potential tariffs sapping the bottom line, the CEO says the company is preparing a team to make adjustments to mitigate the impacts it will feel on the products that it affects.
Off the Charts
When the fundamentals are in flux, as they are now, Cramer turns to the technicals.
On the show's "Off the Charts" segment, Cramer referenced two trade ideas from Larry Williams, a trading veteran of more than 50 years and founder of IReallyTrade.com.
The first is on Home Depot (HD) , which reported earnings on Tuesday before the open. Williams suggests buying the stock five trading days before Thanksgiving -- on Thursday, Nov. 15 -- and holding it for 10 trading days.
He suggests a $5 stop-loss to protect against a decline and reasons that this trade has been successful for 33 consecutive years.
Williams' other trade is on the SPDR Select Retail ETF (XRT) , Cramer said. Williams said investors can go long on the same day as his Home Depot trade, but that investors can buy any time between two trading days and five trading days before Thanksgiving. The plan also includes holding for 10 trading days and using a $5 stop-loss, with the trade working out for 11 consecutive years (as long as the XRT has existed).
What's Cramer's take? It's hard to bet on consistency like that, but remember, it's just a trade, not an investment. If you're wrong, get out, he cautions.
From Risks to Outcomes
Cramer wants to stop worrying so much and start focusing on possible outcomes. Yes, higher interest rates from the Federal Reserve are putting a damper on real estate and new construction.
The Fed's trying to curb inflation, but it would be crazy to think future inflation inputs are going higher right now. Just look at the big drag on commodity prices, led by crude oil's fall of roughly 7% Tuesday. But lumber, copper, paper and all sorts of others are under pressure, too.
Is that from the Fed? Well, it could be from China as well, Cramer said. A slowdown in the Chinese economy hurts all sorts of companies, semiconductors included. We know that from the reports out of Micron Technology (MU) and Skyworks Solutions (SWKS) , he explained.
China's even been willing to give companies concessions, lowering prices to keep their business in the country as they wait out the trade war with the U.S.
But all this weakness could lead to some good. Perhaps it will convince the Fed to hike in December and then go into a wait-and-see mode. Maybe it will help spur progressive trade talks with China at this month's G20 summit, Cramer added.
Over on Real Money, Cramer offers more analysis about risks and China-exposed stocks. Get more of his insights with a free trial subscription to Real Money.
During turbulent times like these, we need to look for companies that are improving themselves, rather than just relying on the market, Cramer said. One name doing just that? Bausch Health Companies (BHC) .
Previously known as Valeant Pharmaceuticals, this company had a bad business plan, monstrous debt and a bad reputation after it fell from The $250s to the single digits, Cramer said.
But in came Joe Papa as its CEO. While the turnaround took some time, Papa is making big strides. He's paying down debt hand-over-fist, repairing the company's reputation and investing in R&D. That last one's important for any pharmaceutical company to have a real future.
The result? It's paying off big time. Shares have tripled off its lows and the company recently beat on earnings and revenue results. Even better, Bausch is seeing organic growth in all of its major segments for the first time since 2015, with a promising start to its treatments for irritable bowel syndrome and opioid withdrawal.
Shares trade at just seven times next year's earnings and the stock's not done going higher under Papa's leadership, Cramer said.
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