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Stop Trading!: Coke or Pepsi?

Home Depot “really cleaned up its act” after former CEO Robert Nardelli left the company, Cramer said during Tuesday's Stop Trading!, while Lowe’s has “better get its act together.”

Home Depot is “a better, different company,” he said, and the dividend looks safe. The good news here is that HD’s outperformance could bode well for Lowe’s.

Visa might end up on the Dow Jones Industrial Average, Cramer said. He listed Visa along with Mastercard and Goldman Sachs as his top financial stocks because they have “very little or no credit risk.”

Cramer also said he prefers Pepsi over Coca-Cola these days, on the strength of that company’s Frito-Lay division. PEP “will break out here," he said. "It is too darn cheap…this is the one of those two to own.”

Watch the video for Cramer’s strategy for trading President Barack Obama’s speech Tuesday night.





Cramer's charitable trust owns Goldman Sachs and Pepsi.

Questions for Cramer? madmoney@cnbc.com

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