Investors can afford to back off from Yeti now that the stock has pulled back from the hot gains it carried in recent months, CNBC's Jim Cramer said Monday.
After soaring 34 percent since he suggested the company last October, the "Mad Money" host cautioned against buying Monday's dip. Shares of Yeti, the high-end cooler manufacturer that went public last November, fell more than 5 percent during Monday's trading session.
"Even after today's reversal, the stock's still up dramatically from where it was trading when I gave it my endorsement in November," Cramer said.
Yeti's business is in great shape and has four initiatives that paint a positive future, he acknowledged. The company is focusing on attracting new customers, rolling out new outdoor lifestyle products, expanding abroad, and stretching its direct-to-consumer business, which grew 45 percent last quarter, Cramer pointed out.
Selling at 19 times the earnings estimates for next year, Cramer said the stock is cheap at current levels. But there are some headwinds in the near future that he thinks investors can avoid by letting it come down and buying shares in stages, he said. Current shareholders can also take some profit at current levels, he said.
"Yeti's lockup on insider sales expires in a little more than six weeks on April 23rd ... and that tends to put additional pressure on a stock. So proceed with caution for this brief window," the host said. "As much as we believe in this business, I also know the stock can take a lot more punishment before the pain comes to an end."
In addition to Yeti, other names that recently went public like Moderna and Tencent Music that pulled back on Monday will also present opportunities in the future, Cramer said.
Click here to find out how Cramer suggests playing your hand.
What triggered Monday's sell-off?
Monday's market sell-off could be the first of multiple, Cramer said, calling for investors to be patient in order to take advantage of it at the right time.
"These pullbacks typically last for more than a day. I think the sellers will return, whether we get a deal with China or we don't. Be patient," the host explained. "But be ready to pounce when the machines take over again and drag the averages down to unsustainably low levels in a heartbeat like we saw early this afternoon. Their indiscriminate selling can eventually give you a good entry point ... as long as you don't jump the gun."
Despite positive news that trade talks between the United States and China are progressing, the major indexes ended the session in the negative. The Dow Jones Industrial Average shed more than 200 points, the fell roughly 0.4 percent and the Nasdaq dipped about 0.2 percent.
Some investors decided to sell on the headlines believing that a trade agreement has already been baked into the market, but Cramer called the move "ridiculous."
More on Cramer's thoughts here.
Growing with the trends
Salesforce.com has raised its full-year fiscal guidance and is preparing to continue growing faster than any "enterprise software company at this level," co-CEO Marc Benioff told CNBC Monday.
The stock fell more than 3 percent during the day's session and took another dip after delivering its latest quarterly earnings following the bell, but the co-founder sounded upbeat about its $16 billion revenue forecast this year.
"That far exceeds my expectation. I still have never been more excited about Salesforce than I am right now," Benioff said in an interview on "Mad Money with Jim Cramer." "When I look at the short term, I see $20 billion right around the corner. I see $30 billion right around the corner. In fact, we initiated a 4-year guidance today, Jim, of $26 [billion] to $28 billion."
Salesforce gave lower-than-expected guidance for fiscal first quarter, but Cramer said this could be a good buying opportunity for investors.
Learn more about Salesforce's earnings and growth plans here.
Targeting disenfranchised customers
Alteryx delivered a strong quarterly earnings report last week as the cloud software company targets customers that have typically been left out, CEO Dean Stoecker told CNBC Monday.
During a sit-down interview with Cramer, the host highlighted that the stock price is up nearly five times its initial offering of $14 a share about two years ago.
"A lot of this has to do with this exploding market for data science and analytics," Stoecker said in a sit-down interview with Cramer. "We're seeing citizen data scientists around the world. Thirty million of them, who have been disenfranchised and locked out of the analytics process, are now getting involved and it's happening everywhere in every vertical ... and almost every country."
Shares of the data analytics company tumbled more than 7 percent during Monday's market sell-off, but the pullback could be intriguing for at tech stock that is still growing, Cramer said.
Watch Alteryx CEO Dean Stoecker's interview and hear if the stock is worth buying here.
Strategy is the new style
Beyond selling clothes in line with the latest trends, companies have more factors to focus on in order to win in this new retail environment, Cramer said.
"In the old days, we simply tried to figure out what was hot ... and what was not," he said. "But when you look at what's working here, it's all about influencers, purpose-driven brands, new methods of distribution [and] customer engagement."
Cramer suggested looking at brands like VF Corp, Foot Locker, and Capri.
In its latest call, VF Corp, the centenarian footwear company, stressed the importance of its purpose-led performance to improve lives and the planet's sustainability, the host said.
Cramer pointed out that Foot Locker invested $100 million in the sneaker resell platform Goat Group to beef up its online presence.
And Capri, the parent of Michael Kors, Versace, and Jimmy Choo, has landed a roster of endorsement from key influencers at a time that the Apple Watch has taken share of that sector, he said.
"Of course, I'm not trying to minimize the importance of fashion," Cramer said. "You'll always have things going in and out of style. But these days, style's about more than just aesthetics."
Click here for Cramer's thoughts about the fashion retail sector.
Cramer's lightning round
In Cramer's lightning round, the "Mad Money" host gave his thoughts about callers' stock picks:
Iron Mountain Inc.: "You know, I gotta tell you. It's come down enough where I think that that yield is really worth going for, 6.8 percent. I'm gonna say yes to that purchase and I've been staying away from the REITs."
Huya Inc.: "You know, online gaming in China that's been shut down a lot by the government. If you want to do a chicken way, I'm actually blessing Nvidia here. I don't think Nvidia's gonna be able to go that much more down after it's been holding at this level for some time."
American Tower Corp.: "Now this is one of the few stocks that actually held in and did not go down on a high-growth day and that does worry me. I think a better level's coming to be able to buy that stock."
Disclosure: Cramer's charitable trust owns shares of Salesforce and Apple.
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