The market is rotating out of biotech, which makes stocks in the sector buys, Jim Cramer said on
"Stop Trading!" segment Thursday.
"The market wants out of these names so badly it's almost like they're creators of problems rather than solvers," Cramer said. "The big money is made by buying the ones they're leaving and selling they ones they're buying."
Cramer said defense contractors like
are in a "secular bull market." Part of the reason is optimistic comments from
about commercial and military aerospace.
are "places where people think growth is going to be unbelievably good," Cramer said, and with the latter likely to produce annual revenue of $9 a share in coming years, the stock will see more upside if its earnings multiple of 60 is preserved.
Cramer also praised
, which he called the "next big stock to take off." The stock is trading above $6, but came up from $3 and traded for above $162 in November 2000, Cramer noted.
On retailers, Cramer said the fact that
is down only moderately while
are in the green shows that "the market isn't as stupid as we think it is."
At the time of publication, Cramer owned Yahoo! in a charitable trust.
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