With oil down to $47 from $147, Cramer likes companies who are finally enjoying lower raw costs. Clorox and Kimberly-Clark have been favorites of his.
“This margin expansion is going to just dazzle people,” he said during Tuesday’s Stop Trading!.
The decline in oil is so dramatic that Cramer thinks it should trump any concern Wall Street has about a strengthening dollar.
Speaking of oil, Cramer doesn’t see exploration stopping regardless of the price per barrel. Schlumberger is his pick since the company held up well during the oil slowdown of 1982-’85, in addition to the continued strength in Exxon Mobil and Chevron .
Cramer also said that he doesn’t think oil will drop to $40.
In retail, VF Corp. and its 5% dividend yield is a buy, he said, calling the stock “so undervalued.”
Macy’s , on the other hand, is a hold until after the company reports its November same-store sales numbers next week. Cramer’s expecting the stock to take a hit, and recommended buying M on that dip.
Jim's charitable trust owns Chevron and VF Corp.
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