Apple Inc. (AAPL), International Business Machines Corp. (IBM) & More: Jim Cramer Is Bullish About These Stocks, What Should You Do?

Jim Cramer recently interviewed the CEO of Eaton Corporation, PLC Ordinary Shares (NYSE:ETN), a $29 billion market cap provider of electrical and hydraulic equipment among other products, on his show. Eaton actually had a good quarter, despite what the CEO agreed was a poor macro environment, and the market reacted positively. Interestingly, revenue grew 34% above its levels in the first quarter of 2012 but came in below analyst expectations while earnings per share beat by five cents and yet were lower than a year earlier. Wall Street analysts are predicting that net income will grow considerably over the next couple of years, as shown by the fact that the trailing and forward P/E multiples are 18 and 12 respectively. Eaton also deserves mention for paying a dividend yield close to 3%.

We’re not sure that Eaton is such a good opportunity- the current valuation is dependent on earnings growth, and yet recently the business has seen declining earnings per share even as revenue as risen. We wouldn’t be short the stock but it seems speculative to be buying it at this time. IBM and Apple’s financials don’t look so great either, although at least in the latter case we have a company which has a large cash hoard and which is cheap enough that it might be worthy of further research.

Disclosure: I own no shares of any stocks mentioned in this article.