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The futures markets take down all stocks, whether they deserve it or not, Cramer explained, and when that happens investors need to be on the lookout for companies that are telling us they're doing just fine.
Case in point: Home Depot (HD) , a perennial Cramer fave. Shares of Home Depot fell for five straight days last month, from $126 to $111. Yet, during that time the company announced it's ramping up hiring for the spring garden season and for its online distribution centers. Fear kept many from buying on this low, Cramer said, but since then shares have only headed higher.
Then there's the case of Verizon (VZ) , which fell for three days from $47 to $44 a share in January. Cramer said while the headlines made Verizon's earnings seem so-so, the company's cash flow and customer churn was spectacular. With a yield three times that of treasuries, shares promptly rallied from $44 to $52 a share.
Finally, Cramer called out Caterpillar (CAT) -- yes, Caterpillar, that beleaguered equipment maker that beat expectations on Jan. 28, but saw its shares go nowhere. Caterpillar shares are tied to commodities, Cramer explained, so when commodities started rallying, smart investors should've seen Cat's move to $75 coming from a mile away.
Off the Charts
Everyone knows that streaming media like Netflix (NFLX) is killing the cable industry, right? Not so fast, Cramer told viewers, as he went "Off the Charts" with colleague Tim Collins over the chart of Time Warner Cable (TWC) .
Collins looked at a long-term monthly chart of Time Warner from 2012 through 2016 and noted the stock marching ever higher year after year. In fact, shares are now just off their all-time highs. The relative strength indicator and on-balance volume indicators were both also bullish and surprisingly stable.
Looking at a weekly chart, the bullish case continued, with the MACD turning bullish three weeks ago after a brief consolidation, and the Force Index, a measure of the strength of a given move, was also bullish.
Collins felt shares of Time Warner could hit $225, or a 16% gain, by the end of March. He would only be concerned if shares pulled back below their current floor of support at $190.
Forgive and Forget
The markets have entered a new era, Cramer told viewers, one where down is no longer out and one where investors can indeed forgive and forget.
Not all companies are destined to repeat their mistakes over and over again. That was certainly the case with Urban Outfitters (URBN) , the down and out retailer that saw shares soar 16% after posted a quarter that wasn't necessarily better, but was better than expected.
The same was true with J.C. Penney (JCP) , a retailer that was also able to pivot, giving customers more of what they want and bucking the recent downward retail spiral.
Finally, Cramer called out Whole Foods Market (WFM) , which thanks to new smaller stores and other initiatives like loyalty programs and delivery is turning itself around and breaking free of its recent funk.
It has only been a few weeks that the markets have been willing to forgive companies like these, Cramer concluded, but the trend is clearly happening and it's only getting stronger.
Executive Decision: Udi Mokady
In his "Executive Decision" segment, Cramer sat down with Udi Mokady, president and CEO of CyberArk (CYBR) , the cyber security company with shares that have fallen a full 50% from their all-time highs last year.
Mokady commented on the day's news of Home Depot's $13 million settlement of its high-profile security breach, saying no company wants this kind of publicity and no company can afford to have its reputation damaged. That's why CyberArk continues to see high demand for its services, even in a down economy.
Mokady continued that CyberArk protects privileged accounts on a network from rogue insiders as well as past employees who may still have access to certain systems. He said CyberArk is all about preventing these accounts from getting compromised.
When asked about the breadth of their business, Mokady said every company now runs on IT and has businesses to protect, whether it be a tech company, an energy company or a food and beverage company.
Cramer said that CyberArk is giving investors everything they should be looking for in a great investment.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said sometimes, a company's problems are of its own making and cannot be extrapolated to the rest of a sector. Case in point: Tableau Software (DATA) , the data analysis company that imploded 50% when it reported dramatically lower earnings and guidance.
But as Tableau rival Splunk (SPLK) just proved, Tableau's problems do not extend beyond itself. Spunk saw none of the problems Tableau cited and appeared to be in a different industry entirely, sending shares soaring 8%.
By comparison, Cramer said Tableau shares deserved to get cut in half while the rest of the sector didn't. That's why most often, the pin action investors see during events like this one, is dead wrong.
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