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. (NYSE: AMC), GameStop Corp. (NYSE: GME) and Robinhood Markets Inc. (NASDAQ: 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. (NYSE: 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. (NYSE: F) and steelmaking stocks such as Nucor Corp. (NYSE: 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. (NYSE: TOL), Lennar Corp. (NYSE: LEN), D R Horton Inc. (NYSE: DHI) and KB Home (NYSE: 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