Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Monday August 19.
9 S&P Stocks That Have Outperformed Google (NASDAQ:GOOG): Priceline (NASDAQ:PCLN), Monster Beverage (NASDAQ:MNST), Apple (NASDAQ:AAPL), Regeneron (NASDAQ:REGN), Alexion (NASDAQ:ALXN), Netflix (NASDAQ:NFLX), Intuitive Surgical (NASDAQ:ISRG), Salesforce.com (NYSE:CRM), Cabot Oil & Gas (NYSE:COG). Other stocks mentioned: Pandora (NYSE:P), Apache (NYSE:APA), Broadcom (NASDAQ:BRCM)
Monday marked the 9th anniversary of Google (GOOG) as a public company. Since it had its IPO 9 years ago, Google has risen 900%, and the stock was up on Monday even though the Dow saw its 4th session in a row in negative territory. Google is still being punished for its previous quarter, which Cramer doesn't think was so bad. Google could be a buy now, because it should perform well.
Cramer discussed 9 other stocks in the S&P 500 that have risen even higher than Google has risen in the last 9 years.
1. Priceline (PCLN) has surged 4,598% in the last nine years, because it has revolutionized the travel industry. Cramer doesn't think the stock is done going higher.
2. Monster Beverage (MNST) has risen 4,293% in nine years, even though some headlines discuss health concerns about energy drinks. Its convenience store sales are off the charts.
3. Apple (AAPL), up 3,171% in 9 years, is making a comeback, thanks in part to Carl Icahn's sizeable stake in the company and a new iPhone. The charts show Apple may rise further.
4. Regeneron (REGN) was the first company featured on Cramer's Mad Money program in 2005, and it has risen 2,720% in 9 years. It has been a winner with its macular degeneration drug and is developing what could be a billion dollar anti-cholesterol drug.
5. Alexion (ALXN) is up 2,592% in nine years and has heart and immunodeficiency drugs. Cramer is concerned that the stock has been elevated by takeover talks, and if a deal is not made, ALXN could see a decline.
6. Netflix (NFLX) is up 1,533% and still gets little respect from analysts, even though it has been a groundbreaker in entertainment content. Carl Icahn holds a stake in the company, and Cramer thinks it could be a buy, but on a pullback.
7. Intuitive Surgical (ISRG) has risen 1,445% in 9 years, but has been down lately over questions concerning how its product is being used.
8. Salesforce.com (CRM) is up 1,341% in 9 years and is the premiere cloud software company. The stock is marking time, but Cramer would not bet against it.
9. Cabot Oil & Gas (COG) has seen a 1,034% gain in 9 years, and has been the most successful domestic natural gas driller, in spite of fluctuations in the price of the commodity.
Cramer took some calls:
Pandora (P) is a stock the shorts have misjudged. It has staying power and can go higher.
Apache (APA) has the misfortune of having 19% of production in Egypt. The stock will likely go lower, and it would be higher if it were located in almost any other country.
Broadcom (BRCM) is a stock Cramer is glad he sold higher. He thinks it will get cheaper.
Whole Foods (NASDAQ:WFM), The Fresh Market (NASDAQ:TFM), Natural Grocers (NYSE:NGVC), Fairway Group (NASDAQ:FWM), Sprouts Farmers Market (NASDAQ:SFM)
The organic food space is growing rapidly, at a 9.5% annual rate in the U.S. The reason why this trend has legs is that it is a culture and not just a fad. Whole Foods (WFM) is one of the best-established players in the space. It is up only 16% for the year, partly because it only met estimates and issued in-line guidance. WFM is competing mainly against itself. The so-called disappointment was because of tough same store sales comparisons; same store sales were up 5.7% this year, which is great compared to its peers, but last year, WFM saw a 9.7% increase. WFM can triple its store count before it is saturated and is growing locations at a rapid pace. Cramer thinks WFM is a buy on weakness. It has a multiple of 30 which is fine, compared to its 19% growth rate.
Other health food grocers have risen substantially, but Cramer thinks they are too hot, and investors should take profits. The Fresh Market (TFM) may expand store count, but it will have a tough time in the Northeast, because it will have to compete against WFM and Trader Joes. The stock is richly valued with a 28 multiple and a 20% growth rate. Natural Grocers (NGVC) has risen 119% since its IPO last year, and is too expensive, with a multiple of 58%. Fairway (FWM) has seen a 74% gain since its April IPO, but its multiple is too hot at 91. Those who got in on the Sprouts Farmers Market (SFM) IPO saw a 122% gain the first day, and it would be wise to ring the register and take gains.
Hain Celestial (NASDAQ:HAIN), Annie's (NYSE:BNNY), WhiteWave (NYSE:WWAV). Other stock mentioned: ConAgra (NYSE:CAG)
WhiteWave (WWAV) was trading sideways until recently. It has terrific drivers, particularly in the plant-based beverage business. Its almond milk is its hot new product with double-digit growth. The company has 16% exposure to Europe, and the turn on the Continent is good news for WWAV. Much of the company's production is internal, especially its almond milk, so it doesn't face the fluctuating costs that HAIN and BNNY have to deal with. However, its products are less proprietary than HAIN's or BNNY's. It is the cheapest stock of the three with a multiple of 23 and a growth rate of 17.5%.
Hain Celestial (HAIN) is expanding into new categories such as baby food, and its brands tend to be the leaders in the industry. HAIN products take up a large amount of aisle space in Whole Foods and other grocery stores. It sometimes has to deal with higher expenses, but since its products are proprietary, these costs can be passed on to the consumer, who may be willing to pay a bit more for Hain's products. The stock is not as cheap as WWAVs, but is less expensive than BNNY's. It trades at a multiple of 25 with a 17% growth rate. The stock has risen 35% so far this year. Those who want to buy Hain should buy some prior to the quarter this coming Wednesday and more if it gets hit.
Annie's (BNNY) is the smallest of the three stocks and is mainly a domestic player. The company missed earnings last time around by 2 cents, but management reaffirmed guidance. The stock has a multiple of 36 and a growth rate of 22.5%. Cramer thinks BNNY is a good company, but an expensive stock.
Cramer took some calls:
Monster Beverage, given its high valuation, is not likely to be taken over. It faces criticism that its products are not healthy and might face regulation by the FDA. Those who want to buy Monster should keep in mind it is a momentum play and not a value stock.
ConAgra (CAG) is a good stock that yields 3.%. Cramer would buy it cheaper.
CEO Interview: Tom Pike, Quintiles (NYSE:Q)
Quintiles (Q) is an under-the-radar company that rose 5% on its IPO in May and has since gained another 5%. Cramer thinks Q deserves to be higher, given the proprietary nature of its business and the demand for its services. Quintiles conducts drug trials for biotech and pharma companies, and mainly focuses on later phase trials, which comprise the bulk of the Research and Development spending for these companies. Quintiles has more demand for its services than it can fill, and its rate of new contracts increased 13% for the quarter and 16% for the year. CEO Tom Pike discussed the company's "full service contracts" which involve trials from the early stages to post-approval trials to aid with marketing. The company beat earnings by 4 cents recently and rose $1.50 on the same day. Cramer thinks Quintiles can go higher; "It is off the beaten path, but it shouldn't be."
What Will Statoil (NYSE:STO) Buy? Whiting Petroleum (NYSE:WLL), Kodiak Oil & Gas (NYSE:KOG), Concho (NYSE:CXO), SandRidge Energy (NYSE:SD)
Statoil (STO) is selling some of its European properties to fund and find more oil. Cramer thinks STO may buy a U.S. oil company soon, but which one? Whiting Petroleum (WLL) is 10% off its high and may be a bargain. Kodiak Oil & Gas (KOG) has had inconsistent growth, so STO might not take a chance with it. Concho (CXO) has superb assets, but may be too expensive. SandRidge (SD) is cheap and might be a good takeover candidate.
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