When the market gives you an opportunity, you have to seize it and do some buying, Jim Cramer told his Mad Money viewers Monday. Too often, traders are quick to judge a stock, leaving the door wide open for investors.
Case in point: Apple (AAPL) , an Action Alerts PLUS holding. Shares of Apple fell from $164 to $150 on fears that iPhone sales were weak. But Cramer said investors should have looked past the hyperbole and seen the truth, that Apple remains the greatest consumer goods company of all time.
Opportunities were also created in Netflix (NFLX) , which jumped 1.6% today. The same with JPMorgan Chase (JPM) , which reported great earnings last week. The instant reaction was to sell the news, but smart investors would have been buying to take advantage of the 2% rally today.
Whether it's Citigroup (C) , Pepsico (PEP) or even the embattled Wells Fargo (WFC) , Cramer said, opportunities are being created daily as the day traders keep getting it wrong. 3M (MMM) fell from $213 to $208, but now sits at $218.
That's not to say that all falling stocks are buys, however. Cramer urged investors to continue to steer clear of retail, after Nordstrom (JWN) failed to secure financing to be taken private and shares of Ulta Beauty (ULTA) continue to slide lower.
Over on Real Money, Cramer explains in detail what's happening in the retail sector and why. Get his insights with a free trial subscription to Real Money.
Still Watching the 'Trump Stocks'
President Trump may not being having a lot of success getting legislation passed, but there's no denying that he's created a more positive environment for business, Cramer told viewers. That's why Cramer circled back to one of his favorite "Trumps stocks," uniform supplier Cintas (CTAS) .
Cintas is a play on hiring, Cramer explained, as the company derives 77% of sales from uniform rentals, which it regularly picks up for cleaning and repair. Six years ago, this stock traded for $30, but today it crossed $151. Cramer said this is a rare business where shareholder and management interests are aligned, as executives own a lot of company stock.
Much of the growth behind Cintas has been its 2106 acquisition of the No. 2 player, GNK Services, for $2.2 billion. Since the deal closed in March, shares are up 20%. But Cintas also delivered 8.3% organic growth without the GNK deal, which will be providing significant synergies beginning next year.
Cramer said shares of Cintas aren't cheap at 25 times earnings, but they deserve the premium given how well management is executing and how a growing economy will need more workers wearing more uniforms.
Is GM Evolving?
Wall Street has always been a big fashion show, with stocks coming in and out of style, seemingly for no reason. That's certainly been true with General Motors (GM) , a stock that's been trading in the mid-$30s since 2014, paying an admirable 3% to 5% yield depending on when you picked it up.
Since the end of August however, GM shares have rocketed from $35 to $46 and, more important, the company has gone from ignored to beloved by analysts. GM has seen no less than three upgrades in recent weeks and several price target increases.
What's behind the move? Cramer said the recent hurricanes are part of it, with over half a million cars needing to be replaced in Texas and Florida. But there's a lot more going on. He said that GM's Maven car sharing service is now being valued at $20 a share by some analysts, while others are raving that the company's autonomous driving platform may be ahead of schedule.
It seems that GM, as one analyst described it, is more of an evolving animal rather than a dying dinosaur, as many had believed. Then there are also GM's electric car plans, with two new vehicles scheduled for the next year and more than 20 by 2023.
What you're seeing is a full re-rating of GM by the analysts, Cramer explained, along with a change in investor base, as income investors are replaced by those looking for growth in this reinvigorated stock and company.
Cramer and the AAP team are adding more Allergan (AGN) shares to the portfolio. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.
Executive Decision: First Horizon National Corporation
For his "Executive Decision" segment, Cramer spoke with Bryan Jordan, chairman, president and CEO of First Horizon National (FHN) , the regional bank that just posted a two-cents-a-share earnings beat with net interest income up 13% and commercial loans expanding by 11%.
Jordan explained that First Horizon's growth stems both from better economic growth as well as the banking sector becoming more stable and more investable since the financial crisis. He said that overall, the Tennessee economy -- where his bank is based -- is well balanced, with manufacturing in the east, healthcare in the middle of the state, and of course, FedEx (FDX) headquartered in Memphis.
When asked about regulations, Jordan said that the increased regulations were needed after the financial crisis, but now the pendulum looks to be swinging more toward the middle, which will be welcome news for all of the banks.
Jordan said that his bank's planned merger with Capital Bank will give it the scale it needs to serve their customers even better.
In his "No-Huddle Offense" segment, Cramer opined on this quarter's earnings thus far, noting that everything pales in comparison to the cloud, ecommerce and technology sectors. He said that Red Hat (RHT) continues to be a winner, as do AutoDesk (ADSK) and Nvidia (NVDA) .
Cramer will host CNBC's Jon Najarian, TD Ameritrade's JJ Kinahan, famed analytics expert Marc Chaikin and other market experts on Oct. 28 in New York City to share successful strategies for active investors.
You can join them as they discuss how smart investors can make the most of options trading, futures contracts, fundamental and quantitative analysis and great ETFs to buy right now. Participants will also get a chance to meet Jim and other panelists.
When: Saturday, Oct. 28, 8 a.m. to 3 p.m.; Where: The Harvard Club of New York, 35 West 44th St., New York; Cost: $250 per person. Click here for the full conference agenda or to reserve your seat now.
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