Search Jim Cramer's Mad Money trading recommendations using ourexclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game videoexclusively on TheStreet.com.
NEW YORK (
) -- "The next time we get a big pullback like today, have your shopping list ready," Jim Cramer told the viewers of his "Mad Money" TV show Thursday.
He said when the market's putting stocks on sale, investors need to look toward the five overarching themes that are driving stocks higher.
1. Explosive Growth. The markets just can't get enough of companies that have great growth, said Cramer, companies like
, a stock which he owns for his charitable trust,
Action Alerts PLUS, along with
. Cramer said all of these names were down big early today, only to skyrocket higher by the close.
2. Aerospace. There's a multi-year move happening in
, and that's good news for not only Boeing, but also
and countless other component suppliers.
3. Banking Revenue Growth. The markets are paying up for banks that are growing revenues, Cramer told viewers. That's why stocks like
are in demand, and why stocks like
are great investments.
4. Housing Growth. With only eight months of housing inventory, Cramer said there will likely be a housing shortage by 2011. He said home builders like
, with its large exposure to California, are great plays, as well as companies that make anything that goes into a home, like
5. Hotels. Corporate travel is back, according to executives at
. Cramer said we should expect great things from
Tale of Two Stocks
In the Thursday "Sell Block" segment, Cramer explained why
, which delivered a five-cent per share earnings beat this week, saw its shares get clobbered.
Cramer compared Coke's results to that of
, which delivered a similar earnings beat, only to see its shares trade higher on the news.
Cramer characterized the seemingly double standard as an "A" student bringing home another "A," versus a "C" student surprising its parents with their first "A." He explained that the expectations for Coke were simple to high, so when it delivered a good quarter, it simply wasn't seen as good enough.
Cramer noted that of the 12 analysts covering Coke, 11 rate it a buy, while at Yum, there are 10 buys and nine holds, which leaves a lot of room for analyst upgrades. Cramer said that on Wall Street, sometimes "less bad" is really good, which is why he underscores not to trade during earnings season where the headlines often get it wrong.
When it comes to Coca-Cola however, Cramer said he still thinks the company is a buy.
Waiting for the Stimulus
In the "Executive Decision" segment, Cramer once again spoke with Dan DiMicco, chairman, president and CEO of
, one of the country's leading steel producers.
Dimicco is a little more optimistic about our nation's economy, after delivering a 10 cent a share profit, compared to sizable losses this time last year. However, he cautioned there is still a long road to recovery ahead of us.
Among the sectors still weighing down the economy, DiMicco said non-residential construction is still at a stand still. He said Nucor is seeing no uptick from the federal stimulus, probably because only $60 billion of the $800 billion package was earmarked for infrastructure and much of that money has yet ot be released.
DiMicco placed blame for the slow recovery squarely on Washington, saying that he's not seeing our nation's leaders focusing on creating jobs, nor recognizing the seriousness of the problem. He said the economy will need to create 25 million new jobs in the coming years to get back to where it was.
Ending on a high note, DiMicco said that two bright spots in the economy have been automotive and energy, both of which seem to be expanding.
Cramer said that shares of Nucor are still too cheap, and he'd be a buyer.
In a second interview, Cramer sat down with Michael Mendenhall, senior vice president and chief marketing officer of
, the global market leader in PCs and printers, and a company noted for its green initiatives.
Mendenhall said that HP is all about building a sustainable society, and about doing good by doing well. He said the company is always looking for ways to be greener, then dropping those savings right to the bottom line.
For example, Mendenhall highlighted the company's focus on energy usage, where it reduced its 85 data centers around the globe to just six, thereby reducing energy usage by 60%. The company has also reduced energy consumption in its notebook computers by 40% in just five years.
Mendenhall also said that it's the first technology company to put an eco highlights label on its boxes so that consumers can see first hand how much money they can save and the attributes of each item. Mendenhall said that in the case of HP's all-in-one printers, consumers can save 30% on energy as compared to a separate printer, scanner and fax machine.
In addition to its eco initiative, Cramer said the company has shown it has the wherewithal to make money for its shareholders.
Cramer was bullish on
He was bearish on
-- Written by Scott Rutt in Washington D.C.
To watch replays of Cramer's video segments, visit the Mad Moneypage on CNBC
Want more Cramer? Check out Jim's rules and commandments forinvesting from his latest book by
For more of Cramer's insights during the Lightning Round, clickhere
At the time of publication, Cramer was long Apple.
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."
None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, TheStreet.com or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor TheStreet.com, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.
Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on TheStreet.com. The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in TheStreet.com, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.