Pepsi (NYSE:PEP), Coca-Cola (NYSE:KO), Kellogg (NYSE:K), Colgate (NYSE:CL), Clorox (NYSE:CLX), Procter & Gamble (NYSE:PG), Best Buy (NYSE:BBY), Corning (NYSE:GLW), United Airlines (UAUA), CSX (NYSE:CSX), Lowe's (NYSE:LOW), Yum! Brands (NYSE:YUM), McDonald's (NYSE:MCD), and Wendy's (NASDAQ:WEN), Au Optronics (NYSE:AUO), Sears (NASDAQ:SHLD), Genentech (DNA), Merck (NYSE:MRK), Pfizer (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) - Cramer says that its time to get out of staples such as PEP, KO, K, CL, CLX and PG and think consumer spending with BBY, GLW, UAUA, CSX, LOW, YUM, MCD and WEN. Cramer also picks AUO which he think is undervalued and his favorite, SHLD as well as financials and drugs. However, Cramer thinks that MRK and PFE are losing steam but predicts that DNA will move higher and that JNJ will benefit from its purchase of PFE's consumer-business segment.
Lennar (NYSE:LEN), Centex (CTX), Deere (NYSE:DE), General Dynamics (NYSE:GD), Apple Computer (NASDAQ:AAPL) - The two factors that improve housing sales, lower interest rates and lower prices are here according to Cramer who notes that LEN and CTX have moved up after a long decline. Although hedge fund managers have criticized him for being bullish on housing, Cramer believes that they want to downgrade the sector excessively to make money. Discussing various sectors, Cramer likes Deere (DE) and United Airlines and suggests getting out of tanker stocks and into defense plays like GD. While some of tech is down because of options-exposing issues it is a good chance to buy Apple.
MetLife (NYSE:MET): Cramer says this insurance company is "best of breed."
Automatic Data Processing (NASDAQ:ADP): Cramer would hold onto ADP even though it is up only 1% for the year.
Ingersoll Rand (NYSE:IR), Caterpillar (NYSE:CAT), Cummins (NYSE:CM) and Shaw Group (SGR): Cramer sees a comeback in infrastructure and recommends IR, CAT, CM and even Shaw Group, a "serial disappointment" in the past which he thinks will move from 30 to 31.
Sysco (NYSE:SYY):Cramer would recommend restaurant-supplier Sysco since consumer is spending is strong, but he doesn't like the company's price-to-earnings multiple of 24.
More: Cramer's latest stock picks, including: Mad Money Recap, Lightening Round, Stop Trading and his Radio Show.
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