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NEW YORK ( TheStreet) -- "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 Apple ( AAPL), a stock which he owns for his charitable trust,
Tale of Two StocksIn the Thursday "Sell Block" segment, Cramer explained why Coca-Cola ( KO), which delivered a five-cent per share earnings beat this week, saw its shares get clobbered. Cramer compared Coke's results to that of Yum! Brands ( YUM), 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 StimulusIn the "Executive Decision" segment, Cramer once again spoke with Dan DiMicco, chairman, president and CEO of Nucor ( NUE), 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.