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Cramer: Growth stocks to grab in the next selloff

Back in the old days, Jim Cramer saw that investors reached for the same stocks after a selloff. They were starved for growth and went for the good old FANG stocks: Facebook, Amazon, Netflix and Google.

But, thanks to the convergence of various events coming together, Cramer sees that FANG has revived itself in the market. First was the predicted slowdown of technology, because so many companies are linked to the downtrend in personal computer use. At the same time, the strong dollar took away the upside of leading industrial stocks.

"Don't forget, we are going to get a rate hike this fall and that will further boost the dollar, so hedge fund managers are trying to get ahead of that monumental change," the "Mad Money" host said.





Cramer doesn't know what Facebook will deliver when it reports next week, but he does know it went crazy from Google's awesome quarter. Then Amazon had three analysts pushing it on Monday morning, which reminded Cramer of what happened with Netflix last week, when its shares jumped 15 percent amid newly bullish estimates and record subscription levels.

The stars appear to be aligned for Amazon, and Cramer expects tremendous growth.

And what about Google? Cramer has always considered this company to be a total spendaholic. This is exactly why Cramer thinks the stock popped recently, when new CFO Ruth Porat showed some discipline by indicating that it might be better to return excess cash to shareholders than to spend it on pie-in-the-sky projects.

And while that is Cramer's inferred interpretation of what happened, he thinks that is definitely what drove Google's stock higher, and after it takes a breather it will be ready for more.

There are also some junior FANGs out there, too, that investors are reaching for in a slower growth environment. Cramer listed those as Ambarella, PayPal and the four horsemen of big pharma: Biogen, Celgene, Gilead and Regeneron.

The "Mad Money" host also included two inverted drug companies, Allergan and Valeant, to the mix as sought after pharma plays for being able to crack the code of buying drug companies and integrating them to boost earnings.

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So, if you are looking for turbocharged growth in today's market, Cramer is going for FANG and the junior FANGs as his go-to list.

"My advice is to buy them ONLY when the market is getting hammered. They come back the fastest, but they go down the fastest, too," Cramer said.

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