Jim Cramer Says the Market Is “Dead Wrong” About These 5 Oversold Stocks

On Thursday, July 16, during the broadcast of Mad Money, Jim Cramer pushed back on the market’s punishment of several blue-chip companies that had just posted strong quarters. He named five companies he believes deserve investors’ attention right now.

“It takes a lot of hubris, a lot of guts to disagree with the market’s judgment about a stock after it reports,” Cramer said. “You’re basically saying that the collective wisdom of millions of people and billions of dollars is just plain wrong.”

The Dow fell 106 points, the S&P 500 dropped 0.51%, and the Nasdaq lost 1.47% on the day. Cramer’s argument: in that session, quality names got thrown out alongside the growth trade, creating selective mispricings worth acting on.

GE Aerospace: A Guidance Raise Met With Selling

GE Aerospace (NYSE:GE | GE Price Prediction) fell roughly 4% despite a clean beat and a broad guidance raise. In Q2 2026, adjusted EPS of $2.02 beat the $1.86 consensus by 8.6%, GAAP revenue climbed to $13.35 billion (up 21% year over year), and free cash flow jumped 43% to $3.0 billion. Management lifted full-year adjusted EPS guidance to $7.65-$7.85 and highlighted a total backlog of over $210 billion, including roughly $170 billion in commercial services.

Cramer’s take: “GE Aerospace remains the best institutional choice right now. You never sell the stock of GE, by the way, before Farnborough. The market’s dead wrong here.” Total orders for the quarter rose 17% to $16.5 billion, with the Commercial Engines and Services segment up 27% in revenue, marking GE’s fifth consecutive quarter of at least 20% adjusted revenue growth.

Wells Fargo: Cramer Calls It “A Steal” At 12x Earnings

Wells Fargo (NYSE:WFC) is the name Cramer told his Investing Club members was “a steal” at 12 times earnings. The Q2 2026 report, released July 14, delivered diluted EPS of $2.00, up 25% year over year, on revenue of $22.6 billion, up 9%. Net income grew 17% to $6.4 billion, with return on average tangible common equity hitting 17.7%. The bank returned $9.8 billion to shareholders in the first half through buybacks and dividends, and announced an expected 11% increase in its Q3 common stock dividend to $0.50 per share.

“Wells Fargo’s quarter wasn’t just good. I thought it was terrific,“ Cramer said. “The analysts were fixated on the sinkhole net interest income. And also they care about net interest margin. Sometimes it’s just so myopic.” Under CEO Charlie Scharf, Cramer sees Wells transforming into a merchant bank, with Markets revenue up 24% and Wealth and Investment Management client assets up 15% to $2.4 trillion. Management reaffirmed a medium-term ROTCE target of 17-18%.

Johnson & Johnson: Look Past the Heart Business Miss

Johnson & Johnson (NYSE:JNJ) took heat because its Abiomed heart-pump business underperformed, pressuring the stock. Cramer argues it is smarter for investors to focus on the pipeline: DARZALEX reached $4.2 billion in quarterly revenue (up 17.6% operationally), TREMFYA surpassed $2 billion for the first time (up 72.5%), and CARVYKTI hit $657 million (up 47.7% operationally). J&J also raised its full-year 2026 revenue guidance to a $101.1 billion midpoint and lifted adjusted EPS guidance to $11.68 at the midpoint. The company has now delivered its 64th consecutive year of dividend increases, raising the quarterly payout 3.1% to $1.34 per share in April 2026.

“ICOTYDE, a recently approved drug for moderate to severe plaque psoriasis, may actually become the biggest drug in J&J history,” Cramer said, urging viewers to “focus on the forest of green, not the 150 mistake.”

UnitedHealth: Margin Recovery, Muted Close

UnitedHealth Group (NYSE:UNH) closed on July 16 at just over $426 per share. The quarter itself was a genuine step-change in profitability: the medical care ratio improved sharply to 86.7% from 89.4% a year earlier, reflecting cost and pricing discipline as well as $860 million of net favorable prior-period medical development. Adjusted EPS came in at $6.38, up from $4.08 a year ago, and earnings from operations jumped 55% to $8.0 billion. Management raised full-year adjusted EPS guidance to $19.50-$20.00 and committed to at least $5 billion in share repurchases for the year.

Levi Strauss: Four Straight Beats, Skeptical Market Reaction

Levi Strauss (NYSE:LEVI) fits Cramer’s mismarked template. Q2 FY2026 adjusted EPS of $0.28 beat the $0.24 consensus by 16.67%, revenue grew 8.0% to $1.562 billion, and DTC hit 51% of revenue with e-commerce up 19%. Yet the stock fell 1.18% on earnings day, extending a frustrating pattern in which five consecutive beats have averaged a -2.07% one-week change in the share price.

The Broader Message

Cramer’s argument is that the market can overreact to a single weak metric in a company’s earnings while overlooking stronger results across the rest of the business. “I think it’s a much better game to find mismarked stocks that analysts don’t really care for that… I know better than they do.”

He believes that disconnect has created opportunities in GE, Wells Fargo, J&J, UnitedHealth, and Levi Strauss, each of which reported solid fundamentals that the market chose to ignore in favor of one headline miss.

Editor’s note: This article has been updated with Q2 2026 actual results for Wells Fargo (EPS of $2.00, revenue of $22.6 billion, Markets revenue up 24%, Wealth and Investment Management client assets up 15% to $2.4 trillion) and Johnson and Johnson (DARZALEX at $4.2 billion up 17.6%, TREMFYA at $2.0 billion up 72.5%, CARVYKTI at $657 million up 47.7%), replacing earlier figures that reflected the prior quarter. The GE Aerospace free cash flow figure has been rounded to the reported $3.0 billion.

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