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NEW YORK (TheStreet) -- Investing is all about looking for clues, Jim Cramer told his Mad Money viewers Tuesday. And sometimes, those clues can be as simple as figuring out what people are buying in stores.
In the case of Urban Outfitters (URBN), it appears customers aren't buying a whole lot, as the company posted a disturbing quarter that sent shares down 15% on the day. While the disappointment was a huge shock to investors, similar patterns at both Kohl's (KSS) and DIllards (DDS) suggest that waiting a few days then buying some Urban might be a good move as both these stocks have begun to recover from their lows.
That's not the case with Wal-Mart (WMT), a stock Cramer sees no reason to own, nor Dick's Sporting Goods (DKS), which remains committed to its ailing golf business. Cramer likes Nike (NKE) and Under Armour (UA) better.
When Home Depot (HD) shares slid, Cramer was not surprised, as that stock was priced to perfection. He noted, however, the company cited strong sales in tools, which made him think of Stanley Black & Decker (SWK), as Stanley dominates the tool category. With housing starts and new household formation both on the upswing, things should be good for Stanley and Cramer suggested getting in ahead of when Lowe's (LOW) reports later this week.