- Investors looking to buy in the current stormy stock market should consider prominent U.S. firms that make money, CNBC’s Jim Cramer said Tuesday.
- “There’s a lot of stocks that I like. I like the classic, great American companies. I think that they’re terrific,” Cramer said.
- While many companies might look to be in a dismal state, Cramer encouraged buyers to watch the big picture and for possible potential down the road.
Investors looking to buy in the current stormy stock market should consider prominent U.S. firms that make money, CNBC’s Jim Cramer said Tuesday.
“There’s a lot of stocks that I like. I like the classic, great American companies. I think that they’re terrific,” Cramer said, citing names including Raytheon and Johnson & Johnson, whose stock prices have come down enough that they’re what the “Mad Money” host considers historically attractive.
Cramer’s comments on “Squawk Box” came one day after the biggest Nasdaq comeback in 14 years, which saw the tech-heavy index turn a 4.9% decline into a small closing gain. However, the Nasdaq was leading the market lower again Tuesday, with a decline of more than 2%, pushing deeper into correction territory.
While he’s generally been looking for things to buy on the cheap, Cramer said, “Wait until we’re back to where we were in midday” on Monday. He stressed investors don’t have to “buy big” before the Federal Reserve concludes its two-day January meeting on Wednesday.
Later on “Squawk on the Street,” Cramer reiterated his 2022 plan to invest in profitable companies with tangible products.
“When [analysts] have their list ready of companies that sell at 30, 40, 50 times sales, well, that’s just once again an invitation to take your money and put it in the fireplace,” he said. “We don’t want that. What we really want are rock-solid companies that make things, make money.”
While many companies might look to be in a dismal state, Cramer encouraged buyers to watch the big picture and for possible potential down the road.
“You may say this quarter of GE is not that good, but then think about next year. Maybe it’s gonna be Raytheon,” he said, referring to the defense contractor’s earnings that exceeded analysts’ expectations this quarter.
Raytheon and General Electric, in addition to J&J and other Dow stocks, reported quarterly results before the opening bell Tuesday. Microsoft is set to kick off Big Tech earnings after the bell.
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Source: Investing - cnbc.com
