Jim Cramer explains how to find buying opportunities in this market

CNBC’s Jim Cramer reviewed recent market action as earnings season stretches on, telling investors how to spot unwarranted declines in stocks that lead to solid buying opportunities.

“This market has the memory of a mayfly – that creates a ton of opportunities,” he said. “Time and again, I’ve seen growth stocks just get pummeled on some little … bit of bad news, some downgrade, some niggling nonsense about a quarter, with less hair on it than I have, and the punishment doesn’t fit the crime if there’s even a crime at all.”

Cramer first pointed to some names he thinks have been unfairly dinged after earnings on Wednesday, including Walt Disney and Uber, which finished the day down 2.44% and 7.56%, respectively. Disney managed to beat on earnings and revenue, but investors were dissatisfied because the company reported a 1% decline in subscribers for its streaming service after raising prices and said it expects a “modest decline” in the second quarter. Wall Street might have been worried because peer Netflix managed to raise prices and didn’t report a similar drop, Cramer said. But he wasn’t phased by this development, saying the company has advantages that Netflix doesn’t, including a theme park business and vast intellectual property rights. He said he feels similarly about Uber, which also topped expectations for revenue, but missed earnings and disappointed some with soft guidance.

He likened Disney and Uber to stocks like American Express, Marriott, Costco and Walmart, which he said have in the past dipped after earnings but recovered soon after. Sellers seem to forget why they sold the credit card company after earnings, he claimed, saying shares have managed to climb past pre-earnings levels fairly quickly. Marriott, too, tends to decline after its report, but investors soon realize it is the best in its sector, Cramer continued. The two retail giants also follow this pattern and don’t usually stay down for long after a post-earnings dip, he added.

But this recurring trend doesn’t mean that it’s simple to find these buying opportunities, Cramer stressed. There are certain themes at which the market has balked as of late, he said, including stocks dependent on business in China. Department stores are also a difficult group, and stocks that sell junk food are vulnerable as the popularity of GLP-1 weight loss drugs continues.

“Always remember that there are indeed Teflon stocks in any market. The key? Don’t buy them unless and until they get knocked down,” he said. “And then remember, they’ll get up again, they’re never going to keep them down.”

Disney, Uber, American Express, Marriot, Costco and Walmart did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club Charitable Trust holds shares of Disney and Costco.