Best Buy's stock is currently trading at five times next year's earnings with a 5 percent growth rate, Cramer said. It has lost 31 percent in the last month, too. While some analysts have recently thrown the electronics retailer an upgrade for its cash flows and big buyback, Cramer isn't so optimistic.
"Best Buy has a broken business model," Cramer said May 24. "It's become 'Best Browse,' a place where people go to check out electronics in person before they make their purchases on Amazon, and that's not going to change anytime soon."
While Best Buy's cash flows are promising, Cramer noted that its same-store sales declined by 5.3 percent in its latest quarter, much worse than the average Wall Street analyst expected. Management argues the company will be saved by plans to focus on mobile, but Cramer thinks the super-low margin cellphone business just won't be enough.
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