Cramer Says Forget AMC, Robinhood In This Frothy Market And Buy These Old-School Undervalued Stocks

CNBC host Jim Cramer is advising investors to forget the craziness around Reddit-favorite stocks such as AMC Entertainment Holdings Inc. AMC, GameStop Corp. GME and Robinhood Markets Inc. HOOD, and instead focus on “cheap stocks” in a market trading at record highs.

What Happened: “Focus on the cheap stocks that have done nothing and sell for peanuts. They’re a lot more plentiful than you might think,” the “Mad Money” host said.

Cramer believes Walmart Inc. WMT is undervalued, noting that the Dow component was actually down for the year until Wells Fargo upgraded the stock on Thursday.

Cramer is also bullish on Ford Motor Co. F and steelmaking stocks such as Nucor Corp. NUE. Nucor is the best-run steelmaker in the world, according to the CNBC host.

Further, Cramer pointed to home builders such as Toll Brothers Inc. TOL, Lennar Corp. LEN, D R Horton Inc. DHI and KB Home KBH as good bargains as these stocks do not reflect the relentless demand for new homes.

See Also: If You Invested $1,000 In Walmart Stock One Year Ago, Here's How Much You'd Have Now

Why It Matters: Shares of Reddit-favorite stocks such as Robinhood, AMC Entertainment and GameStop are seeing high volatility in recent days. Robinhood's shares fell more than 27% on Thursday after surging 50% in the previous session.

Walmart, the world’s largest retailer, is seeing success with its e-commerce business in recent years. The company reported 37% online sales growth in the first quarter of this year.

Ford reported better-than-expected earnings for the second quarter last week and said it plans to spend more on electric vehicles than traditional internal combustion vehicles starting in 2023.

Price Action:  Walmart shares closed almost 1.9% higher in Thursday’s trading at $145.49, while Ford shares closed 2.9% higher at $13.71.

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• How to Buy Stocks on Robinhood

Photo: Courtesy of JAH2k on Wikimedia