Good Stocks on Sale: Cramer’s

The best time to buy merchandise is when it’s on sale, Jim Cramer reminded his Mad Money viewers Wednesday. That’s why on down days like today, Cramer has a special set of rules for what to buy and where to take a pass.

Investors must always keep in mind that during the heart of earnings season, when hundreds of reports are being released daily, even the analysts become exhausted. That’s why so many stocks are mis-priced when they initially report their earnings.

This can create opportunities if you know what you’re looking for. Cramer said AT&T (T – Get Report) was one of those opportunities, as shares fell 3.9% today, but still yield 6% and have a lot going for them. That’s not the case with Chipotle Mexican Grill (CMG – Get Report) , however, which fell 14.5% by the close and still has a long road to recovery.

Investors should also keep an eye overseas, as weakness in Europe is positive for U.S. stocks that sell there. Which stocks made Cramer’s shopping list? He said Visa (V – Get Report) remains attractive, as does UnitedHealth Group (UNH – Get Report) on the strength of Anthem (ANTM – Get Report) , which rose 5.3% today. Cramer also gave the nod to Texas Instruments (TXN – Get Report) .

You must be prudent when trading during earnings, Cramer concluded. Keep your eyes open, don’t buy all at once but do buy when the great merchandise gets put on sale arbitrarily.

Stanley Black & Decker: A Buy

After a strong quarter that no one saw coming, Cramer said that shares of Stanley Black & Decker (SWK – Get Report) are a buy, especially on weakness, like today’s 1.3% decline.

Shares of Stanley Black & Decker are already up 42% in 2017, but Cramer said that this company is only just getting started after making a series of really smart moves.

First, the company purchased the tool division of Newell Brands (NWL – Get Report) for $1.95 billion. It then spun off its slower-growing assets, including mechanical locks, to raise cash for its biggest move, purchasing the Craftsman brand from Sears Holdings (SHLD – Get Report) .

Younger investors may not remember, but there was a time when Craftsman was the No. 1 tool brand in the nation. Stanley Black & Decker has already indicated that it will be investing heavily to reinvigorate Craftsman to its former glory, including expanding its distribution.

When the company reported yesterday, Stanley Black & Decker delivered an eight-cents-a-share earnings beat with a 14% rise in revenues and 6% organic growth, and the company doesn’t expect Craftsman to kick into high gear until mid-2018.

With shares trading at just 19 times next year’s estimates, Cramer said Stanley Black & Decker is a

Bloomberg