Jim Cramer's Mad Money In-Depth Stock Picks 7/25

Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday July 25. Click on a stock ticker for more analysis:

All Aboard with CSX (CSX) and Burlington North (BNI)

Cramer believes that CSX is not actually a cyclical stock, because nowadays railroads haul coal, grain, road aggregate, waste and other items that need to be transported regardless of the economic climate. "CSX is now more than 60% non-cyclical," he said. "I think CSX is now a secular growth story." CVX is cheap, selling at 14 times earnings, and railroads in general, with the exception of BNI, have almost no competition. Cramer thinks that rail will beat out trucking because of the poor quality of roads and rising gas prices.

Chewed Out: Wrigley (WWY), Cadbury Schweppes (CSG), ConAgra Food (CAG) and Sara Lee (SLE)

When Cramer recommends defensive, secular stocks, he means solid companies, like Coke or Pepsi,and warns against plays that seem safe, but aren't. Wrigley recently reported poor earnings, failed in marketing its Altoids candy, and according to Cramer, faces stiff competition with CSG's Trident. "The big problem is thin margins because Cadbury is on a mission to take market share away from Wrigley," he said. "These are totally interchangeable products." At 22 times earnings, WWY is one of the most expensive stocks of its kind. Cramer also suggests staying away from CAG and SL.

Thin on NutriSystem (NTRI)

How could a stock that reported a 358% earnings growth get crushed? Cramer noted that NutriSystem experienced "total decapitation" because, while analysts love the stock, investors are turned off. The main problem, according to Cramer, is that 30% of NTRI's stock float was shorted, because the company sells directly to customers rather than through retail stores.

CEO Interview, Gene Isenberg Nabors Industries (NBR)

Cramer noted that NBR's earnings were great, but that analysts are punishing the company, and asked if Isenberg thought of taking the NBR private. Gene Isenberg responded that Nabors is buying back a large number of shares and comments "They think day rates have gone down. We think they will go up ... We are the international driller of choice, " he said. Cramer adds that Gene Isenberg's statements have been reliable for 22 years.

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