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"It's time to buy
," Jim Cramer told viewers of his "Mad Money" TV show Wednesday.
Cramer made his recommendation despite the retailer's botched quarter and an abysmal stock performance this year. The stock is down 46% since December.
Cramer said that while J.Crew has been on a one-way ticket lower all year, he feels that now is the time to invest. He put a $35 price target on the stock one year from today.
While the overall retail environment remains bad, with slowing store traffic, Cramer said only
and J. Crew have the ability to buck the trend and head higher.
Cramer said he believes J. Crew's recent earnings miss was due in large part to problems with the company's Website. With the overhaul of the Website nearing completion, Cramer said the retailer should regain its footing.
Cramer put his support behind CEO Mickey Drexler, a man who Cramer says turned around
, and founded Old Navy.
While many CEOs in retail are "one-hit wonders," Cramer said Drexler is a standout. He said the time to invest with Drexler is when he's out of favor, which he is right now with the stock of J. Crew cut almost in half since December.
Cramer said J. Crew may still go lower from here, but feels the momentum will swing upward once the 12 analysts who currently rate the company as a hold begin to see the light and upgrade the stock.
Cramer: The FDIC Needs a Plan -- Now
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Stick With Walgreen
For his "In The Ring" segment, Cramer pitted
, which he also owns for his
Action Alerts PLUS portfolio, to determine which drugstore giant is the better buy.
When looking at the drugstore sector overall, Cramer gave both company's a 4 out of 5, as drugstores offer safety and consistency in uncertain markets. He reminded viewers that 50% of a stock's performance is usually linked to its sector.
Next, Cramer looked at growth. For drugstores, Cramer said the key metric is same-store sales. CVS last reported same-store sales up 3.1%, while Walgreen reported 4.1%, giving the latter a one-point lead on Cramer's scorecard.
Cramer also considered each company's growth strategy. Last year CVS acquired Caremark, a pharmacy benefits manager, and by all accounts that acquisition has not gone well.
Meanwhile, Walgreen has stuck to its core strategy of being just a great pharmacy and drugstore, he said. Cramer awarded one point to CVS for its strategy, but none for its execution, while awarding Walgreen a point for its simplicity.
In the end, Cramer said Walgreen comes out on top 7-5 on his scorecard. He said this is not a market that values complexity or poor execution and CVS unfortunately has both.
Am I Diversified?
Cramer spoke with callers to see if their portfolios have what it takes.
The first caller's portfolio included
Cramer called this portfolio "perfect" and said he loved it.
The second caller's top holdings included
Great Lakes Dredge
Cramer said this portfolio also was perfect for this market.
The third caller had
as their top five stocks.
Cramer identified two of a kind with Terra and Deere, and he recommended selling Terra for a defense stock or industrial company.
In this segment, Cramer clarified an earlier "Sudden Death" call to sell
He said he still likes Santander but he meant to say he recommended selling the European bank
He told a second viewer not to invest in any single home building stock, but instead to invest in a home building index if they feel home builders are on the rise.
Cramer was bullish on
Cramer was bullish on
He was bearish on
Ambac Financial Group
.P/>Want more Cramer? Check out Jim's rules and commandments for investing by
Read more of Cramer's Mad Money Lightning Round insights
For "Mad Money" performance statistics and other links, check out Mad Money stats
At the time of publication, Cramer was long on Walgreen, Cisco.
Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."
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