Mad Money

Cramer Remix: Pessimism is weighing on this stock

Share
Key Points
  • CNBC's Jim Cramer explains why Micron's stock is down.
  • Cramer also discusses why he thinks the market missed the mark on Home Depot and other stocks.
  • The Mad Money picks Williams-Sonoma as an example of how retailers are winning despite industry pressures.
VIDEO1:0701:07
Cramer Remix: Pessimism is weighing on this stock

It isn't time to give up on Micron just yet, CNBC's Jim Cramer said.

Micron is down 5.5 percent in the last month, but Cramer attributes that drop to the market's pessimism about the company.

"I would not sell it here," the Mad Money host told a caller. "I would buy more when it ticks back down to the 48-level. Get a better basis."

Pick AMD over Intel

An Advanced Micro Devices computer chip.
Ashley Pon | Bloomberg | Getty Images

In the battle of the semiconductor names, CNBC's Jim Cramer thinks that long-troubled AMD is now a better buy than household name Intel. So far this year, AMD shares have more than doubled while Intel is up less than 2 percent.

When AMD CEO Lisa Su took over the struggling company in 2014, she laid out a plan to aggressively cut costs and also design better quality chips more in line with their competitors. Cramer called Su a "miracle worker" for her work in turning the company around.

With regards to Intel, Cramer thinks they lost their way when trying to diversify away from the personal computer market a few years ago. As a result, "it became clear that AMD has leapfrogged them with its latest products," said Cramer.

Although AMD is more expensive than Intel on a price-to-earnings basis, Cramer thinks that the stock is still worth it. "AMD has transformed itself into a fabulous growth business, and I bet its stock still has more room to run," he concluded.

Hear more about why Cramer thinks you should pick AMD over Intel.

Williams-Sonoma as a retail winner

Williams Sonoma storefront in Philadelphia, PA.
Fred Imbert | CNBC

Williams-Sonoma is the perfect example to explain how retailers are surprising investors in spite of pressure on the industry, according to CNBC's Jim Cramer.

The kitchenware and furniture seller is the latest in a long list of retailers that includes and to report strong quarterly earnings. Despite challenges over the past several years that include increasing raw materials costs, competition from and the ongoing trade conflict, most retailers — excepting and — have held up this quarter against the pressure.

"Intellectually it seems like it should be too much for retail, which was supposed to wilt under these pressures," the Mad Money host said.

In its second-quarter report released on Wednesday, the San Francisco-based company said it earned 77 cents per share, up 9 cents from Wall Street estimates of 68 cents per share. Its revenues of $1.28 billion for the quarter also beat analysts' expectations of $1.26 billion. The parent company of Pottery Barn and West Elm also raised its forecast for full-year revenues and comps.

Click here to read more about why Cramer thinks Williams-Sonoma is a winner.

The market misses the mark

A Home Depot employee is seen outside a store in Los Angeles, California.
Lucy Nicholson | Reuters

This earnings season, companies have seen their shares move dramatically after reporting their quarterly numbers. CNBC's Jim Cramer thinks that the market has reacted foolishly at times, which means that investors can benefit if they know where to look.

"The market's idiocy? Well, let's just say it's your opportunity," Cramer said.

The "Mad Money" host gave a rundown of several stocks where the market missed the mark during earnings season.

One of Cramer's "absolute favorite companies," Home Depot reported numbers before the bell last Tuesday that beat Wall Street's expectations. The stock rose in early trading.

But on the conference call later that day, executive management defensively fielded questions about what the broader housing market slowdown would affect the company's outlook. The stock fell $2 during the call.

"That would've been a great time to buy," Cramer said. Since then, the stock made up for those losses and then some. Shares of Home Depot closed at $200.16 on Thursday, $8 higher than its low after reporting earnings.

Read more about what other stocks that the market missed the mark on this earnings season.

Tariffs are 'no big deal,' Tellurian founder says

Charif Souki, Tellurian 
Scott Mlyn | CNBC

Tellurian founder Charif Souki isn't worried about potential tariffs on natural gas exports, he told CNBC's Jim Cramer.

China put natural gas imports from the United States on its list of goods that could face a retaliatory tariff as the trade conflict between the two countries escalates. The country was the second-largest liquefied natural gas importer in the world last year, and it's expected to become the largest importer in 2019.

"If they impose tariffs on American gas, all that means is we'll receive different gas," Souki said. "It will substitute it. It's not a big deal."

Tellurian deals in liquefied natural gas, the commodity that jump-started a new industry when Souki's old company Cheniere Energy began exporting it. Souki co-founded Cheniere and served as its CEO until late 2015.

Read more about why Souki isn't scared by Chinese tariffs.

Lightning Round: Watch this stock's earnings next week

Centene: "I felt that it was a great stock, but it may have run too much, too fast. I would hold on and wait for pullback then buy, but otherwise no."

Daseke: "I think XPO is a much better buy."

Briggs & Stratton: "They just did a really good quarter. I was very proud of them. Stock was down, but they put together some good numbers."

Oracle: "Oracle is an inexpensive stock. I am in search of a catalyst. Salesforce reports next week; I am not in search of a catalyst. I think it's going to be a good quarter."

Disclosure: Cramer's charitable trust owns shares of Salesforce.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com