By Alexa LoMonaco
Publication Date: 2026-08-13 22:56:00
Key Points
- CNBC’s Jim Cramer said investors shouldn’t automatically sell a stock that falls on conservative earnings guidance, especially when management has a history of underpromising and overdelivering.
- He said Cisco’s post-earnings pullback is a buying opportunity, arguing conservative guidance masks strong demand across AI, security and data-center networking.
CNBC’s Jim Cramer shared a strategy on Thursday that can help investors spot future winners. Look for companies that “underpromise and overdeliver,” Cramer recommended, with management setting conservative forecasts that leave room to beat expectations later. “When you see it … don’t run from it,” the ” Mad Money ” host said, “you are likely to have an excellent start for a very good position.” He pointed to Cisco as the latest example. The networking giant’s stock initially rallied in extended trading Wednesday evening after reporting strong quarterly results , before quickly reversing course as investors zeroed in…
