Right now, cyclical stocks like miners and industrials are in favor, said TheStreet's Jim Cramer, comanager of the Action Alerts PLUS portfolio, on Wednesday. He was taking viewer questions from the floor of the New York Stock Exchange.
That's put a pause on buying stocks like Hershey (HSY) - Get Hershey Company Report , which Cramer also noted caught a downgrade to sell from hold at Bank of America/Merrill Lynch. Although convenience store sales are going strong -- something Cramer extrapolated from the recent earnings results from PepsiCo (PEP) - Get PepsiCo, Inc. Report -- he's going to wait for a larger pullback before calling it a buy.
As for banks, Cramer said he would rather buy Action Alerts PLUS name Bank of America (BAC) - Get Bank of America Corp Report over Wells Fargo (WFC) - Get Wells Fargo & Company Report (another Action Alerts PLUS holding) and Citigroup (C) - Get Citigroup Inc. Report . BofA shares are climbing higher, closing the gap between its current price near $14.70 and its book value of roughly $16.
"I like that one very much," Cramer said of Bank of America. "Not just as a bank but for its brokerage business in Merrill Lynch as well, preferring it over others like Cowen (COWN) - Get Cowen Inc Class A Report ."
Cramer turned his attention to Skechers (SKX) - Get Skechers U.S.A., Inc. Class A Report , which he said has very competent management that he doesn't want to bet against. "I think it's fine," he added.
Another fine stock is AT&T (T) - Get AT&T Inc. Report , which one viewer owned in an IRA account. However, Cramer warned viewers to be careful with MLP stocks like Energy Transfer Partners (ETP) in retirement accounts, because the government has different tax rules for stocks like this.
Finally, Cramer touched on Valspar (VAL) - Get Valaris Ltd. Report , which was acquired by Sherwin-Williams (SHW) - Get Sherwin-Williams Company Report in March. Sherwin-Williams, Whirlpool (WHR) - Get Whirlpool Corporation Report , Masco (MAS) - Get Masco Corporation Report and Home Depot (HD) - Get Home Depot, Inc. Report are all ways for investors to play the trend in housewares, he explained.
Cramer answers viewers' social media questions on Facebook (FB) - Get Meta Platforms Inc. Class A Report and on Twitter (TWTR) - Get Twitter, Inc. Report . Send questions to him @JimCramer with the hashtag #CramerQ.
At the time of publication, Cramer's Action Alerts PLUS had a long position in BAC, PEP and WFC, as well as FB and TWTR.