Everything's looking up in the market except for one thing:
, said Jim Cramer on his
"RealMoney" radio show Thursday.
He stressed that it's time to get out of staples such as Pepsi,
Procter & Gamble
and focus on consumer-spending plays such as
Cramer also recommends
, which he says is undervalued, and
, which he owns for his charitable trust,
Action Alerts PLUS.
"You gotta make that switch," Cramer said.
He also recommends financials and drugs. "Biotech seems to be peaking," Cramer said, though he believes that
is going higher, despite its losing momentum.
Cramer added that
are also losing momentum, but that things are looking even brighter for
Johnson & Johnson
, which he also owns for his charitable trust, since its purchase of Pfizer's consumer-business segment.
Heckled on Housing
"There are two reasons why housing gets bought: lower interest rates and lower prices," said Cramer.
And both are true now. "This is not genius," he said. "It's the way every business cycle works."
Stocks such as
bottomed out in July after analysts downgraded them as a group, but they've come back up.
Cramer said he's been getting feedback from hedge fund managers and their minions that he's dead wrong on housing. But those folks just want to bring stock prices down so they can buy, Cramer said. "Housing stocks have spoken."
Different industries are driven by different things, Cramer said, like interest rates, consumer spending, agriculture cycles and airline trends. Cramer recommends
But with oil prices going lower, Cramer recommends getting out of tanker stocks and getting into defense companies such as
"This is absolutely the right time to buy tech, because tech is on sale today," said Cramer.
Tech is down today because of options-expensing problems, which makes it a good time to buy stocks such as
, he said.
"When restaurants do well,
does well," said Cramer.
Sysco brings food to restaurants, and with consumer spending strong, "what could be a better business now that restaurant business is booming?" he asked one caller.
Cramer said he wouldn't recommend the stock, however, citing Sysco's price-to-earnings multiple of 24.
is for me," Cramer told another caller who asked what he saw in the company's future. Cramer has been calling MetLife a "best-of-breed" insurance company and iterates that the stock is "terrific."
Automatic Data Processing
is right," he said to another caller. Though Cramer adds that the stock is only up 1% for the year, he believes that it's still a good opportunity.
ADP "feels the heat," but it's doing a lot of things right. "Please hold onto it," Cramer said.
People had high hopes for
, which has been a "serial disappointment," Cramer said.
But the whole infrastructure group is finally making a comeback, and Cramer wants to be there. He sees Shaw Group, which is trading at around $28, going up to $30 to $31.
, which Cramer owns for his charitable trust,
Action Alerts PLUS, and is trading at around $40, "makes too much sense," he said.
Cramer also recommends
At the time of publication, Cramer was long Johnson & Johnson, Ingersoll Rand and Sears Holdings.
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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