Cramer lists 5 stocks to consider during ‘any bout of weakness’

CNBC’s Jim Cramer said he knows it’s been a “brutal month” for the market, but on Thursday he listed five stocks he thinks investors could consider buying during “any bout of weakness.”

“Whenever the market gets hit, you know what, there are almost always buying opportunities,” Cramer said.

“Even if you think that we’re looking at more downside once we hear from Fed chief Jay Powell tomorrow at Jackson Hole, you can use that to buy the best beaten-down stocks at even lower levels,” he continued, referring to Federal Reserve chair Jerome Powell’s Friday speech where he is expected to signal whether interest rates will remain high.

Here are the five stocks that Cramer has in mind:

1. American Airlines: Cramer said the air carrier, which is now down 13% from the beginning of the month, according to FactSet, was performing well earlier through the spring and early summer. But it has since pulled back from those highs, he said, adding that many airlines have been feeling the sting of recent consumer weakness. Cramer acknowledged these industrywide worries, suggesting investors put money into airlines with “the best international exposure,” including American, United and Delta.
2. Bank of America: Bank of America is down more than 10% from Aug. 1, according to FactSet, in part due to fears of slowing loan growth and new banking regulations, according to Cramer. He added that when the Federal Reserve tightens, Bank of America gets higher net interest margins, which makes them more profitable. Cramer said he may be worried about smaller regional banks, but is not concerned about big industry players like Bank of America.
3. Electronic Arts: The video game publisher is down about 12% in the August time frame, according to FactSet. Cramer noted Electronic Arts’ “scarcity value” since Microsoft has put in a new bid to take over Activision Blizzard, another major video game publisher.
4. Ball Corp: Ball Corp., a company that makes metal packaging for food, beverages and household products, is down a little over 10%, according to FactSet. Cramer highlighted this company because it has limited competition, and it just announced the $5 billion sale of its noncore aerospace division. He also said he thinks this sale will allow the company to become more focused and simple.
5. Cummins: Engine maker Cummins is down more than 11% from Aug. 1, according to FactSet. Cramer said he’s been recommending this company despite its recent poor quarter because they’ve made “major strides” into hydrogen-powered engines, which he said he thinks could be very successful in the future. He also noted there is a lot of federal money geared toward clean energy sources like hydrogen.