Investors should like a market that embraces value, Jim Cramer told his Mad Money viewers Thursday. Fortunately, that's exactly the market we have, as investors circled back to snap up the stocks that have been left behind.
Retail was the first group to be reignited today, as positive same-store sales from Target (TGT - Get Report) sent shares up 4.8%. Not everything will fall victim to Amazon (AMZN - Get Report) , Cramer said. He still likes Home Depot (HD - Get Report) for gardening, Walmart (WMT - Get Report) for its turnaround and TJX Companies (TJX - Get Report) because it buys distressed merchandise from all the other retailers.
The oils were the second group to rally today, as crude rose above $46 a barrel. Cramer liked Apache (APA - Get Report) , an Action Alerts PLUS holding, even though he admitted he's been wrong so far on the stock. Chevron (CVX - Get Report) and Occidental Petroleum (OXY - Get Report) also topped his buy list.
Finally, there are the auto-related stocks, with General Motors (GM - Get Report) leading the way, up 1% on the day. GM trades at a ridiculous 6 times earnings, Cramer said and that will spur analysts to upgrade the group over the next 72 hours.
On Real Money, Cramer says he likes a market that embraces value even without mergers and acquisitions. Get his insights on how to play this market with a free trial subscription to Real Money.
Let's Get to Work
After sitting down with Herman Miller (MLHR - Get Report) CEO Brian Walker last night, Cramer decided to take a look at the other big player in the office furniture space, Steelcase (SCS - Get Report) , and see which company is the one to own.
On the surface, both of these companies should be doing well with an improving economy, but in reality, one is doing far better than the other.
Steelcase delivered sales that were down 1% in 2016, while Herman Miller saw a 5.6% gain. Herman Miller is expected to see its earnings accelerate this year, while forecasts see the opposite for Steelcase. Cramer noted that both companies are valued similarly, with Steelcase at 13.6 times earnings and Herman Miller at 14.6 times.
After Steelcase delivered a small miss on earnings last quarter, Cramer said, he cannot recommend it. He's sticking with Herman Miller, which last posted a nine-cents-a-share earnings beat with robust guidance for the rest of 2017.
After today's surprising pre-announcement of positive same-store sales, is it finally time to buy Target? Cramer said he's encouraged by the company's news that food and fashion are growing, but the announcement itself raises other issues.
When it comes to retail, forecasting is everything. If you do it correctly, you have just the right amount of what customers want. Do it incorrectly, and it's markdown city. So why then did Target get it wrong, forecasting lower sales only to change their mind now?
In a world where Amazon uses artificial intelligence to know what customers want before they do, you cannot afford to get your forecasts wrong.
That's why Cramer said that today's news, while positive, only makes the retailers a buy for a trade and not for an investment.
Sometimes a stock comes down so hard and so fast, it takes your breath away, Cramer told viewers. That has certainly been the case with Alder BioPharmaceuticals (ALDR) , which has lost 45% of it's value over the past three months.
Cramer said he's been dead wrong on this development-stage biotech, recommending it multiple times over the past few years. The company only has one drug in its near-term pipeline, a genetically engineered antibody treatment for migraines. Currently, there's only one treatment for migraines available and that's Allergan's (AGN - Get Report) Botox.
But when Alder reported the Phase III results on June 27, the stock got crushed, despite the trial meeting all of its goals. The problem? The results were widely expected and now investors are worried that rivals may beat the company to market.
Cramer said while he's been wrong thus far on Alder, he only cares where a stock is going, not where its been. In this case, the fears have been overblown to the downside and he'd be a buyer at these levels.
But, he warned, development stage biotechs are for speculation only, as we've just seen how risky these stocks can be.
In the Lightning Round, Cramer was bullish on Xilinx (XLNX - Get Report) , Arena Pharmaceuticals (ARNA - Get Report) , Magellan Midstream Partners (MMP - Get Report) , Altria (MO - Get Report) , Bank of Montreal (BMO - Get Report) and IHS Markit (INFO - Get Report) .
Cramer and the AAP team are telling their investment club members what they will be looking for when Citigroup (C - Get Report) and Wells Fargo (WFC - Get Report) report earnings. Get in on the conversation with a free trial subscription to Action Alerts PLUS.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
The first portfolio included Idexx Pharmaceuticals (IDXX - Get Report) , Visa (V - Get Report) , MGM Growth Properties (MGP - Get Report) , Activision Blizzard (ATVI - Get Report) and Mercadolibre (MELI - Get Report) .
Cramer said he'd bless this portfolio as diversified, but the stocks are all expensive.
The second portfolio's top holdings included Salesforce.com (CRM - Get Report) , Nike (NKE - Get Report) , Walt Disney (DIS - Get Report) , Camping World (CWH - Get Report) and Activision Blizzard (ATVI - Get Report) .
Cramer said this portfolio can't have two entertainment companies and he suggested selling Disney to swap in a healthcare stock.
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.