If ever there was an ugly earnings season, it was this one.
Although most companies beat estimates, profits were dismal and forecasts even worse. In an environment such as this, how can you possibly put money to work in stocks?
"Management doesn't conquer all, but boy it can conquer a lot," said Jim Cramer.
And identifying companies with strong managements, Cramer thinks, is a critical component as investors decide which stocks to buy – and which to avoid.
According to Cramer the proof is in the pudding – or at least the proof is in the latest results from Home Depot and Dick's Sporting Goods.
"Much of what was good this quarter can be placed right at the feet of the people who run these companies, Frank Blake and Ed Stack, two remarkable CEOs that are worthy of exuberant praise," said Cramer.
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In the case of Home Depot, the Mad Money host said to note the 2.9% increase in average ticket price, to $54.55, an important metric because it suggests that shoppers are spending more at the store than they did before. And the average number of customers shopping at Home Depot showed a hefty increase, too. Read More: "Home Depot Earnings Beat, Raises Outlook"