NEW YORK ( TheStreet) -- "All is right with the world, or at least with the markets," Jim Cramer proclaimed to his "Mad Money"TV show viewers Thursday. Cramer said individual stocks are no longer trading in lock-step with the news of the day and are finally trading on their own merits, making the lost art of stock-picking relevant again. Cramer said the pattern has been that if a company does well, its stock shoots higher, but if if fails to deliver, shares get instantly crushed. Nowhere is this pattern more visible than in retail, said Cramer. For example, when Tractor Supply ( TSCO) delivered an upside surprise shares shot up today by 10%. "Stunning," said Cramer. Likewise with Dick's Sporting Goods ( DKS), a stock that had Wall Street on edge, delivered better than expected results only to see its share pop 12.5%. These join other retailers like Lululemon Athletica ( LULU), which has seen an 18-point gain from its lows from last month. But on the downside there's been stocks like Williams Sonoma ( WSM), which did not deliver as promised, only to see its shares down sharply 12.2%. Tiffany & Co ( TIF) told the same tale earlier this week. Cramer said there's also another pattern emerging in the markets, one that's more concerning. He said some of the most beaten down stocks of 2011 are seeing an undeserved bounce in 2012, mainly the financials. He said that stocks like Bank of America ( BAC) and Citigroup ( C) haven't fixed any of their problems are are just as vulnerable to Europe as a month ago, yet these companies' shares are racing higher. Cramer said he prefers good banks that are getting better, banks like US Bancorp ( USB), a stock which he owns for his charitable trust,
Change in Perception"In this game, perceptions can change on a dime," Cramer told viewers in he coined the first-ever reverse "Sell Block" segment. Cramer said the stock of Dupont ( DD), an Action Alerts PLUS holding, which was loathed in December is now worth a second look. Cramer explained that Dupont was in the doghouse when it pre-announced an earnings shortfall back on Dec, 9, but since then several key factors have changed for the company and as he always says, when the facts change, investors need to change their minds. First, Cramer said that Monsanto ( MON) reported a monster quarter, something that should bode well for Dupont's agriculture division. Second is autos, where the U.S. build numbers continue to increase from an estimated 13 million cars just last month to an estimated 14.5 million cars today. More cars is great news for Dupont's auto products. Third is housing, which appears to have bottomed. If housing is turning a corner, said Cramer, that would be great news for Dupont. Fourth is the falling price of natural gas, a key component in many chemicals for Dupont. Cramer said that natural gas is perhaps the key raw material for the company. Finally, there's management. Cramer said Dupont's management continues to cut costs and further bolster their 3.4% dividend yield. With shares trading at a low 11 times earnings with a 12% growth rate, Cramer said its time for investors to change their mind and get bullish on Dupont.
King of Home ToolsFor his next "Fixer Upper" stock, Cramer highlighted Stanley Black & Decker ( SWK), another Action Alerts PLUS holding. Cramer said with home improvement retailers like Home Depot ( HD) doing so well, it's only natural for investors to look at which companies make the products that Home Depot sells. And in the case of Stanley, that's a lot of them. Stanley is the reigning king of the tool market, with an astounding 40% market share in the U.S. The company derives 50% of its sales from the do-it-yourself home improvement market, 26% from its security products division and the remainder from industrial products. Stanley also has a small, but growing, international presence (26% of sales). Cramer said Stanley's strength has been to keep its customers satisfied so it can continue taking market share. The company also has a solid track record of smart acquisitions and cost-savings from those acquisitions. Because of this, Cramer said the earnings estimates for Stanley may indeed be too low, allowing the company to surprise Wall Street as housing continues to bottom and recover. Shares of Stanley Black & Decker currently trade at just 12 times earnings despite the company's 18% growth rate and a PEG ratio of less than one. Cramer said this, coupled with its 2.3% dividend yield, makes shares of Stanley an incredible bargain.