"Sell Clorox right now," Cramer, the co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Cramer's Mad Dash" segment.
There's no growth in the company, Cramer said, and it's time for investors to exit the stock after the recent rally.
"A downgrade on a day of reporting is usually not bullish," Cramer said. "How bad is it going to be?"
The company has a lot of cash and a fall in the stock price could make Bed Bath & Beyond a takeover target, he concluded.
-- Written by Bret Kenwell in Petoskey, Mich.