Cramer launches new stock rating system, evaluates 6 large companies

CNBC’s Jim Cramer voiced his views on whether companies that recently reported their quarterly earnings are investable, based on his newly introduced valuation system.

“The main reason this market has gotten so tough is that we finally have not-so-hot gains, but Wall Street isn’t adopting its usual stance of buying shares issuing NABAF results – it’s not as bad as we feared,” the “crazy money“said the host.

“Six months ago you could get away with the NABAF all the time. Forgiveness reigned within two or three days. Not anymore,” he added.

To keep up with this new market, Cramer created a new method to rank the shares of companies that recently reported their quarterly earnings.

“There are tons of stocks that can bounce back now that they have come down hard from their highs, but we need to understand what can make those rallies possible,” he said.

Here is Cramer’s three-tier inventory classification system:

  • Exclamation point (!): This symbol represents “Good news, which means the stock has the right to move up despite the larger sell-off,” Cramer said.
  • Question mark (?): That means the stock is “going down pretty much anyway,” he said.
  • asterisk :

“Earnings get an asterisk if there’s something away from the company that went wrong, something you can easily explain … So maybe it’s worth buying the stock here because it could be forgiven later,” Cramer said.

“Exclamation point? Yes. Question mark? No. Asterisk, maybe, just maybe and that’s where you can make money after the earnings, because it’s the decent ones that haven’t run away yet,” Cramer said.

  1. Here are the titles he chose to highlight and his vote for each of them:Seen :
  2. !Microsoft :
  3. !A half :
  4. !Boeing :
  5. ?Texas Instruments :
  6. *alphabet

: *

Disclosure: Cramer’s Charitable Trust owns shares in Alphabet, Boeing, Meta and Microsoft.