Even with the Dow up almost 150 points on Wednesday, stocks are still “broken and treacherous,” Cramer said during Mad Money. So investors want to look for mini bull markets they can buy on the next dip. And right now the shoe stocks are extremely bullish.
Cramer’s favorite of the group? Deckers Outdoor , maker of the iconic UGG boots and Teva sport shoes and sandals. Aside of recently reporting stellar earnings, the company also boasts a record metric used only by Mad Money: the congratulations ratio.
When a company delivers a great quarter, analysts on the conference call will often congratulate management for a job well done. The previous congratulations-ratio record was held by J. Crew Group, which earned accolades from five out of eight analysts on the call, or 63%. But Deckers bested that result on April 22 when six out of nine tipped their hats to the company. That’s a 67% ratio.
The stock is up 68% since Cramer’s Oct. 13 recommendation, but it’s pulled back $15 from its high of over $157 to $142. Cramer thinks DECK could be a bargain at this level. To find out, he invited Chairman, CEO and President Angel Martinez. Watch the video for the full interview.
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