These are the stocks posting the largest moves before the bell.Market Insiderread more
Home Depot's CEO says the retailer cut its outlook partly due to "the potential impacts to the U.S. consumer arising from recently announced tariffs."Retailread more
The report comes as Trump in recent days has lashed out over media reports about growing recession fears.Politicsread more
Nobel prize winner Robert Shiller takes issue with the Federal Reserve's rate cut in July because of the psychological harm it caused the markets.Marketsread more
United States Steel Corp will temporarily lay off hundreds of workers at its Great Lakes facility in Michigan in coming weeks, according to a filing the steelmaker made with...US Marketsread more
Energy stocks may be fueling up for a comeback rally. One technical analyst says that after the sector's pummeling, these two stocks look particularly good.Trading Nationread more
Kohl's said Tuesday that a strong start to the back-to-school season and new partnership with Amazon helped the retailer beat Wall Street earnings expectations during the...Retailread more
While the U.S. gave Huawei a 90-day reprieve, allowing American businesses to keep selling specific products to the Chinese firm, it also added more affiliates of the...Technologyread more
Dow set to rise; White House denies payroll tax cut report; China tweaks interest rates; Home Depot worries about trade war; Beyond Meat gets an upgradeMarketsread more
For investors still haunted by last week's monster sell-off, the market's comeback is set to last, according to J.P. Morgan's quant guru.Marketsread more
The attacks come after state and local ransomware attacks in New York, Louisiana, Maryland and Florida resulted in the loss of significant sums.Technologyread more
On a day when the market gets crushed, Jim Cramer likes to take a look at some of his lessons learned over his years of managing portfolios on Wall Street.
So, he did some research to analyze the trades and see what worked—and what did not—in the past. After all, what better way to gain insight on the future than to evaluate your success and failures from the past?
While digging through years of research, the "Mad Money" host discovered a very strange trend: Sometimes, the best time to buy a stock is when the analysts cut the company's earnings estimates.
At first glance, the thesis may seem misguided, if not backward. After all, lower estimates are a sign that a company's profits may not be as robust as previously expected. But that's not the case, in Cramer's eyes.
Yes, that's right, sometimes when a stock hits bottom—that is a great investing opportunity.
For instance, in March of 2009 Cramer made one of his personal best investments with Caterpillar. The stock had been crashing fast for weeks, and the analysts cut their estimates ahead of what they thought would be a bad quarter.
Sure enough, when Caterpillar finally reported, the quarter was uglier than the analysts predicted. Yikes!
But the stock didn't react. In fact, it barely twitched at the bad news. It fell slightly and then stabilized back to where it was before the hideous earnings were announced. Investors who may have shorted the stock in anticipation that it would tank further were in the red.
Cramer considered this a classic stock bottom signal, when the stock doesn't even bat an eyelash at bad news.
"Calling bottoms yourself can be a dangerous activity, fraught with peril if you come in too early, as so often happens. But sometimes the market will pretty much call the bottom for you," Cramer added.
Read more from Mad Money with Jim Cramer
Cramer: How to pick a stock
Cramer: Stocks that signal a raging buy
Cramer: Effective pro trading technique
To get the most reliable sign that a stock is hitting bottom, just wait for a moment when the estimates are so low that they can finally be beaten.
Cramer is convinced the phenomenon will play out again. "I know it seems counterintuitive," he admitted, "but when the Street gets extremely negative on an otherwise solid company, a shrewd investor may be looking at opportunity."