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The stock market is back in the black for the year and Jim Cramer told his Mad Money viewers Friday that it's time to get back to the fundamentals of stock picking. As he looked to next week, Cramer said he likes what he sees.
Monday will begin with existing home sales and Cramer said a big number would be a good sign for the housing sector. Also on Monday, Mattress Firm (MFRM) , a company that took on a lot of debt. Cramer said he wants to hear how they're going to cover that debt.
Next, on Tuesday, Nike (NKE) , RedHat (RHT) and Five Below (FIVE) will be reporting. Cramer was bullish on both Nike and RedHat, but skeptical over whether Five Below can join the retail winner's circle.
Then, on Thursday, it's Accenture (ACN) in the spotlight and Cramer said he's a buyer. That wasn't the case with Finish Line (FINL) or Signet Jewelers (SIG) , however, although Cramer is bullish on Game Stop (GME) .
Finally, on Friday, Cramer will be tuning in for the latest read on personal consumption to see if the American consumer still has a pulse.
Focus on CST Brands
CST operates 1,032 locations in the U.S. and Canada and has seen its shares rally 60% since their debut. But lately, with oil prices plunging, CST has seen shares stall as it derives nearly half of its revenue from the ailing Texas economy.
The stalled share prices have caught the attention of activist investors, who have urged change, something CST management is looking to do with plans to expand to 3,000 locations and plans to monetize its real estate.
Cramer said trading at 17 times earnings, CST shares are not cheap, but with management willing to consider "strategic alternatives" to get shares moving, he's willing to bless owning it for speculation.
Do Your Homework
Those investors who are diligent, patient and do their homework will be rewarded, Cramer told viewers, as he highlighted three cloud computing companies whose executives he recently interviewed in San Francisco, Adobe Systems (ADBE) , Salesforce.com (CRM) and Workday (WDAY) .
Cramer said anyone who listened to these interviews could instantly tell how well they were doing. Revenue and earnings were up, customers were happy and market shares were expanding. So when LinkedIn (LNKD) and Tableau Software (DATA) subsequently imploded, taking everyone along with them, that should have been the signal for those in the know to buy, buy, buy.
This guilt by association selloff made no sense at all, Cramer said, and is evidenced by how quickly Adobe, Salesforce and Workday were able to recover and how strong their most recent earnings were.
You always have to be prepared and ready to pounce when you see negative pin action that has nothing to do with the stocks you follow, Cramer concluded.
Chemours RedeemedCramer looked at one of the worst-performing deals in recent memory, Chemours ( CC) , which was spun off last July from DuPont ( DD) .
Cramer said the Chemours deal was meant to separate DuPont's commodity chemical business from its higher margin business. The company had high hopes when it debuted at $16.51 a share. But in the months that followed, as commodity prices fell, so, too, did Chemours, to a low of just $3.06 a share in January 2016.
But since those lows, shares have been on a tear, rallying 144%, helping the company beat expectations when it last reported on Feb 23.
Cramer said Chemours is definitely a speculative stock. But trading at just six times earnings, it's too cheap to ignore in an environment where commodities are finally finding their footing.
In the "Mad Tweets" segment, Cramer responded to questions sent via Twitter to @JimCramer.
Finally, when asked about Petrobras (PBR) , Cramer said it's a bad stock and he'd stay away.
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