Retail is struggling, too. Cramer said the fact that J. Crew Group and Coach continue to decline is “the most worrisome sign to me,” adding that the Coach same-store sales report Thursday was “simply awful.”
“These stocks somehow are not done going down,” Cramer said.
In health care, there’s a debate as to whether CVS Caremark is suffering because pharmacy-benefits management is too tough a business right now or because MedcoHealth Solutions is taking share. Cramer leaned toward the latter, saying MHS is a buy.
And lastly, investors wondering why KB Home moved higher for most of Friday’s trading session need only listen to the company’s fourth-quarter conference call. Some of KB’s hardest-hit markets are rebounding, management said. With houses at affordable levels and interest rates low, these areas are now buyer-friendly. California, in particular, showed clear signs of a return.
“It’s a very positive story,” Cramer said, though KB Homes’ balance sheet wasn’t strong enough for him to recommend the stock right now.
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the Mad Money website? email@example.com