Mad Money

Cramer Remix: The ideal stock to own in this moment of volatility

Key Points
  • "Mad Money" host Jim Cramer reveals which stock he has his eye on after Wednesday's Fed news.
  • Cramer also tries to make sense of the action in Ulta Beauty's stock.
  • In the lightning round, Cramer doubles down on his take on a consumer electronics play.
Cramer Remix: The ideal stock to own in this moment of volatility

In Wednesday's edition of "Am I Diversified," CNBC's Jim Cramer spotted a great stock for investors to own through the market's daily ups and downs.

"Goldman Sachs is the ideal stock to own in this moment of volatility and it's very inexpensive," the "Mad Money" host told homegamers.

Cramer also approved of the rest of the portfolio: Honeywell, which he called a "terrific," diversified industrial; Apple, one of his all-time favorites; Netflix; and Raytheon, which he said was a great play on President Donald Trump's Middle East arms-dealership.

"We have defense, we have tech, we have entertainment, we have finance and we have industrial," Cramer said. "That is perfect."

Don't let Facebook ruin FANG

FANG (Facebook, Amazon, Netflix and Google) apps on a smartphone.
Adam Jeffery | CNBC

With all the negative Facebook-Cambridge Analytica headlines, Cramer had to remind investors not to let the news reflect badly on all of the FANG stocks.

"You can't write off FANG because these are dynamic institutions. They're constantly evolving," the "Mad Money" host said, using his acronym for Facebook, Amazon, Netflix and Google, now Alphabet.

Elongating the acronym to FAANNG to include the stocks of Apple and Nvidia, Cramer went through the companies one by one to explain why they are still worth investors' time.

Still lovin' it?

Customers at a McDonald's restaurant
Scott Mlyn | CNBC

When Cramer saw that the stock of McDonald's was down nearly 11 percent from its January highs, he wondered if he had to reevaluate his bullish stance on the fast food chain.

"While the stock has been bouncing in recent weeks, the pullback was severe enough that I think it's worth reassessing this story to make sure McDonald's is still worth owning in this new, more risky environment," Cramer said.

"The answer? Not only is McDonald's stock getting attractive, I think you're being given a pretty good entry point here."

Cramer has long been a fan of McDonald's CEO Steve Easterbrook, who took on the role in 2015. Since then, Easterbrook has revamped the chain's menu, introduced all-day breakfast and fueled a 60 percent gain in shares of McDonald's.

What FedEx and Larry Kudlow have in common

Workers prepare to offload an incoming FedEx plane in Newark, New Jersey.
Andrew Burton | Getty Images

Cramer has watched the market parse what longtime CNBC host Larry Kudlow's new role as director of the National Economic Council will mean for U.S. trade policy.

"But if you want to know where Larry stands on the actual issues, all you need to do is listen to the conference call from FedEx last night," the "Mad Money" host said on Wednesday. "In all of the years I worked with Larry on 'Kudlow & Cramer,' no executive came closer to his views than Fred Smith, the founder, chairman and CEO of FedEx."

Considering FedEx's growing international exposure, Smith, a former Marine and Washington heavyweight, can't afford not to share his outlook on the state of global trade, Cramer said.

Interestingly enough, the CEO distanced himself from Trump's hard-line views on trade on the call.

The beauty in Ulta's sliding stock

Few things are more agonizing for Cramer than watching a stock he likes lose its momentum.

"When a fast-growing, high-flying momentum name breaks, it turns into a falling knife that will cut anyone who tries to catch it on the way down," he said. "For most of the last 10 months, that has been the exact story of Ulta Beauty."

Ulta's slowing growth has made its stock a total roller-coaster, unable to make a real bounce. But after the cosmetics company reported a weaker-than-expected quarter last week, the stock surged — a "very bullish sign," Cramer said.

"In fact, it's a classic tell of a bottom, because it signals that your weak-handed fellow shareholders have at last capitulated," he continued.

And when Ulta's management talked about their plans to make growth-boosting investments on the post-earnings conference call, Cramer regained his confidence in the makeup play's prospects.

"All things considered, I think Ulta Beauty is back," he said. "Even after the latest bounce, I recommend buying some because the stock has fallen to levels where it's become too cheap to ignore."

Lightning round: Zig instead of ZAGG

In Cramer's lightning round, he shared his take on some callers' favorite stocks:

Zagg: "The guy I really liked there, the CEO, he stepped down. He retired, and that was one of the problems with the company. And the quarter wasn't that great, either. I should've been more negative when I was asked about it last."

Dollar Tree: "No, no, no. Dollar General is the right one. Dollar Tree really did miss [on earnings]. They've been distracted by how bad Family Dollar is. They bit off too much to chew."

Disclosure: Cramer's charitable trust owns shares of Goldman Sachs, Honeywell, Apple, Raytheon, Facebook, Amazon, Alphabet and Nvidia.

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