Jim Cramer offers up four key stocks you need to buy

Jim Cramer offers up four key stocks you need to buy originally appeared on TheStreet.

The price of a company’s stock, at least in short-term, often has little connection with the actual performance of the company.

Many big names, in fact, will see their stock drop after they report positive earnings. Even when the numbers are very good, this can happen because the market had already assumed the numbers would be positive, so the gains from that had already been priced in.

Related: Billionaire Ackman has one-word message on stock market

Sometimes it seems like even in a sea of good news, a tiny island of bad news can send a stock downward.

In many ways, stocks are like sports. The better team usually wins, but there are upsets, and a partial score does not always reflect the final results

💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰

Apple has been famous for this. It can report stellar numbers across the board, but if Tim Cook makes a small comment on potential supply chain issues delaying the new iPad, the stock may fall.

Jim Cramer, who under all the bluster, often serves as a voice of reason for the stock market, has named four stocks that are falling, but are still good buys. These are companies facing short-term headwinds that have clearer sailing long-term.

Cramer told his CNBC audience on July 11 that it’s important to understand why a stock has fallen. Sometimes it’s due to inherent weakness in the company. In other cases, it’s for a more trivial reason that does not dim its long-term prospects.

He noted that when a stock falls for reasons that don’t change the buy thesis for the company, that’s a time for investors to strike. It’s one of the rare times you can buy quality at a bargain.

“The great ones never come cheap. But…they can be cheaper from where they were. Sometimes all you can hope for is a chance to buy a stock of a terrific company at a discount when the market is at an all-time high,” he shared on his show.

More experts:

Perhaps most famously, Chipotle saw its share price drop for over a year during and after its E. coli scandal. It did not matter that the company handled the food safety issue well or that it remained an inherently strong business. The market punished it for a relatively minor mistake, which created an opportunity for disciplined investors.

Cramer named four stocks that are top buys and incredibly strong long-term brands that are struggling at the moment. This has caused their prices to fall, creating a major buying opportunity.