Mad Money

Cramer: You Won’t Lose Sleep over These Stocks

Cramer: No More Sleepless Nights

Stocks closed mixed Thursday, after rebounding from losses earlier in the day. The Dow Jones Industrial Average closed up 4 points, the S&P inched up .19 percent and the Nasdaq fell 1 percent. But even on good days, there are plenty of stocks that can cause you to lose sleep, “Mad Money” host Jim Cramer said Wednesday.

“It still depends on the stocks,” Cramer said, “because it's not enough that we fix the challenged European banks and the troubled European countries. We also have to fix our portfolios so they avoid anything that can be hurt by Europe or slowing business worldwide.”

Take Oracle , which reported one of the worst quarters Cramer’s ever seen from a company that hadn’t already pre-announced bad results. Emerson Electric also reported weak industrial orders and CarMax disappointed with car sales.

However, there are some names Cramer thinks you won’t lose any sleep over.

  • First, he suggests buying a master limited partnership like Enterprise Products Partners or Kinder Morgan Energy Partners.
  • He also suggests taking your pick from Bristol-Myers Squibb , Merck and Pfizer , because they all have good dividends and have decent new drug pipelines.
  • Verizon is a “huge” winner off the failed AT&T/T-Mobile merger and has a five percent yield, Cramer said.
  • He likes utilities like Con Ed , Duke Energy and Southern .
  • He also likes the turns in Kellogg and ConAgra Foods .
  • General Electric , which owns 49 percent of CNBC parent company NBC Universal, is an accidentally high yielder. However, he will revisit this name when it gets to $20 because unless it keeps raising the dividend as fast as it has, the yield will be too low for Cramer to recommend aggressively.
  • McDonald’s and Nike are Cramer’s favorite growth names.

(Related: 10 Lessons Learned from Nike)


Call Cramer: 1-800-743-CNBC

When this story was published, Cramer's charitable trust owned AT&T and Oracle.

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