ignores the rock-solid fundamentals in place at both companies, Jim Cramer said Friday on
Stop Trading! segment.
Cramer said Thursday's decision by Seattle-based Starbucks to raise prices by a nickel a cup shows that last month's worries about coffee-market saturation were misguided. "Everyone hated the 4% number," Cramer said, referring to the weak July same-store sales growth figure that fueled last month's selloff. But "I'm a believer because of the price increase."
Cramer said Starbucks shares are down 20% from their high because Wall Street worried that its growth story was over. But the price increase "says there's not saturation," Cramer said, adding that CEO Howard Schultz wouldn't have made the decision if business weren't going well, ahead of a big Oct. 5 analyst meeting.
Cramer feels the same way about
, the Memphis, Tenn., package deliverer. He likened recent selling in the stock to Wall Street's poor initial reaction to comments by
"We have seen this pattern," Cramer said, referring to all three companies' blowout quarters and lukewarm next-quarter forecasts. "Underpromise, overdeliver. ... Who doesn't buy FedEx going into an Internet Christmas?"
Cramer said he'd buy both Starbucks and FedEx now. "These work next week," he said. "They may work the whole quarter."
At the time of publication, Cramer had no position in stocks mentioned.
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