Stop Trading!: Trading the Apple Upgrade

The restaurant stocks have been “very soggy” because of higher gas prices, Cramer said Tuesday, but those prices are peaking. He recommended two possible winners in this scenario.

Cheaper gas puts more money in consumers’ wallets, the common wisdom says, and that often translates into more dining out. If gas prices are leveling off, as Cramer thinks, then restaurants should see more business.

Panera Bread may be “way below the rest of the group,” while CKE Restaurants is “gigantically behind the group,” Cramer said, “but that doesn’t mean that you can’t have a rising stock.” Restaurant stocks trade as a group, and he thinks these two follow the sector higher.

Apple had climbed more than 6% on Tuesday, thanks to an analyst upgrade based on the expectation that even more iPhone growth is yet to come. Cramer likes Skyworks Solutions , maker of the iPhone’s chip sets, as a play on this.

“I’m always surprised when the iPhone sales are up that people don’t reach for Skyworks,” he said. “They tend to do it the next day.”

Another company that seems to have been underestimated is Qualcomm, at least as far as Barclays is concerned. Barclays said QCOM’s estimates were too low, a sentiment that is “so rare these days,” Cramer said. The stock has been “trapped at this one price and perhaps it’s breaking out.”

Lastly, Cramer thinks that Regions Financial is one of the major banks that is most likely to “not be independent” much longer. He said the company’s upcoming secondary offering “looks really, really awful.”

Watch the video to find out why Cramer disliked Fortress Investment Group's secondary offering.

Cramer's charitable trust owns Qualcomm.

Call Cramer: 1-800-743-CBNC

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