CNBC's Jim Cramer reveals stocks worth buying after Thursday's market decline. The "Mad Money" host chats with top brass of Columbia Sportswear, Smarties and Eurazeo. He explains why investors shouldn't stress the new speculations about future interest rate cuts and ramblings about U.S.-China trade uncertainties.
The "Mad Money" host recommended drug stocks Bristol-Myers Squibb, Merck, Eli Lilly, Biogen and Abbott Laboratories as buys on the way down. He added Mondelez and Waste Management to the shopping list, before suggesting that Walmart, Target and Costco are approaching oversold levels.
"When we get these sell-offs we tend to hear broad sweeping predictions, often of dire proportions," Cramer said, arguing that investors should "view this pullback as a gift."
Columbia Sportswear beat sales and profit estimates in its third-quarter report and raised its earnings guidance for the current quarter, but shares failed to rally in Thursday's session.
The stock was weighed down by doubts that Chinese officials reportedly have about the prospects of reaching a trade deal with U.S. negotiators. Longtime CEO Tim Boyle on Thursday told Cramer that the apparel company has been shifting sourcing away from China.
"We've, over the last several years, been moving product out of China, not because we don't like China, but frankly because there's been better opportunities in other sourcing countries," he said in a one-on-one interview.
The Federal Reserve on Wednesday cut interest rates for the third time this year and talking heads on Thursday began speculating what the central bank would do about monetary policy in the future.
Chinese officials on Thursday reportedly cast doubts about trade talks with U.S. negotiators, and more questions were abound about the trade dispute between the world's largest economies. Both events triggered a sell-off during the session, which Cramer said should be taken with a grain of salt.
"You need to ignore these parlor games that the commentators love to play. I want you to keep your eyes on the prize, and that's owning high-quality stocks of high-quality companies and riding them through periods of idle chatter," the host said. "I know it is hard believe, but let me tell you: after 40 years of doing this, I can tell you that most of this speculation about the Fed or China trade talks is absolutely meaningless. Do yourself a favor and tune it out."
Smarties, the privately held tablet candy producer now in its fifth generation of family ownership, is an iconic candy brand that is working to keep with the modern consumer and finding success. Co-President Liz Dee paid Cramer a visit to discus the host's favorite treat, which Dee explained is free of fat, gluten and top allergens, while also marketable to vegan consumers.
"While we are still a nostalgic and iconic candy, we continue to stay fresh and current for today's consumers," she said. "So we're really working for today's sensibilities while still staying classic and true to our roots with the candy."
Eurazeo Managing Director Adrianne Shapira sits down with Jim Cramer to explain how the French private equity firm evaluates investment opportunities and breaks down changing consumer tastes she sees in the market. The company's portfolio includes Nest Fragrances, cosmetics company Pat McGrath Labs and fashion curator Bandier, among others.
"I think what we found is our founders — all of our five investments are founder led — they are unbelievable soulful people," Shapira said in the one-on-one, "and they've got great stories to tell and as a result you know consumers really resonate with that."
In Cramer's lightning round, the "Mad Money" host takes calls and delivers his thoughts about callers' favorite stock picks in rapid speed.
Xilinx: "Xilinx has got too much China."
Occidental Petroleum: "No, we're not going to buy more oils. ... The oils are just a bummer."
Innovative Industrial Properties: "It's a REIT for cannabis, and I'm going to say nothing cannabis is working, including a REIT. So no way, no how."