Cramer is always looking for stocks that have been knocked down too far and are poised to turn around. So on Monday, he turned his attention to what he calls the “dogs of the S&P 500” — the worst performing stocks in the index. And he found some names he thinks are worth buying.
One of those is Monster Worldwide, the parent company of online employment service Monster.com. The “Mad Money” host admitted he got behind MWW too early back in April, but he thinks the time is right now. Recent employment numbers are “rearview,” he said. It’s the future that matters.
(Slideshow—Cramer: Buy This, Not That)
“What matters to Monster is where the employment picture is going, not where it’s been,” he said. “While most U.S. economic data got off to a weak start in June, we got several more positive indicators later in the month ... which makes me feel like the transitory weakness is behind us.”
Cramer also thinks with the stock down 39 percent in the first half of the year, the short interest is high. And if the short-sellers turn out to be wrong, you could get a nice squeeze as they buy all the stock at the same time to cover their positions.
What’s more, he said Monster is reinventing itself and could make a terrific takeover candidate for LinkedIn , Yahoo! or eBay.
Another poor performing name on Cramer’s radar is Janus Capital. The company has transformed itself from a company known primarily for technology mutual funds into a "solutions firm" offering diversified products and advice.
Down 27 percent the first half of the year, the stock was hammered because it’s a stock-centric asset manager and weakness in the broader market made it harder for them to bring in new investors. As money comes back into the market, Cramer thinks this stock will be a bargain.