Jim Cramer is one of the top watched TV personalities on CNBC. He is the host of Mad Money and also the co-founder and chairman of TheStreet.com. Nearly two hundred fifty thousand people watch his show daily on TV and most of these are ordinary investors trying to understand what’s going on in the market. Jim Cramer’s bullish and bearish stock picks on his show is the starting point for many investments made by these folks.
Here are Jim Cramer’s stock picks on his October 24th Mad Money episode:
Eaton Corp. (ETN): Cramer’s buy recommendation was based on solid underlying fundamentals, strong bookings, raised forecasts, a 3% yield and trading relatively cheap. The stock trades at 9.7 times next year’s earnings and has an 11% growth rate. Cramer recommended owning Eaton if a portfolio is lacking an industrial. Eaton has a $15.09 billion market cap. George Soros of Soros Fund Management owns 150K shares.
VF Corp. (VFC): This Cramer-favorite apparel maker beat estimates and raised it’s dividend. VF Corp. currently yields 2.1%, trades at 23 times earnings and has a $15 billion market cap.
Dick’s Sporting Goods (DKS): Cramer used this sporting goods company to prove that a company with strong long-term prospects isn‘t always a buy. The stock went from $30 to $40 per share over the course of a month, which made Cramer disagree with an analyst‘s buy rating. However, both Nike (NKE) and Finish Line (FNL) reported strong quarters, proving the athletic apparel market was strong.
Cramer likes the company, but thinks the timing is not right to own the stock. Dick’s reported less than expected numbers the past 2 quarters and with them reporting next month, Cramer doesn’t want to take the chance they’ll do it again. Instead, Cramer recommended Deckers (DECK), which has much faster growth and will present a buying opportunity after it reports on Thursday. Dick’s Sporting Goods trades at 22 times earnings and has a $4.7 billion market cap.
Caterpillar (CAT): Cramer thinks this equipment maker is cheap and sees it going back near its 52-week high. Cut the position in half when it goes back to $110. Caterpillar yields 2%, trades at 14 times earnings and has a $59.29 billion market cap. Louis Navellier of Navellier & Associates owns over 400K shares.
BlackRock Group (BLK): Cramer isn’t excited by this, or any other, financial stock. However, he would be okay buying if the yield goes back to 4%. BlackRock has a $28.2 billion market cap and trades at 12.2 times earnings.
MetLife (MET): Metlife received a hold recommendation from Cramer, as he recommended buying Prudential (PRU) to investors who were looking for insurance stocks. Metlife has a $36.68 billion market cap and trades at 15.6 times earnings.
Enterprise Properties Trust (EPR): Enterprise Properties is a REIT that owns theaters and adjacent properties. The REIT has 160 properties across 33 states. However, the stock has declined 14% over the past 3 months. After reviewing the fundamentals and future prospects with CEO David Brain, Cramer thinks the stock is too low and the 6.5% yield is covered. Enterprise Properties has a $2 billion market cap and trades at 24 times earnings.