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After a sunny weekend, James Cramer came up with highly profitable stocks like Exxon (XOM), ConocoPhillips (COP), Caterpillar (CAT) and Abbott (ABT). Some of his mentions are among my two lists of mega-cap and mid-cap stocks for the ultimate retirement portfolio. He also offered good alternatives to the stocks asked by readers. Here, is a fundamental analysis of these stocks from Cramer’s Lightning Round mentions on July 25:

Exxon Mobil: Cramer rather prefers ConocoPhillips when it comes to oil and gas companies. Here is a brief comparison between these two:

Current as of July 25 close.

Exxon Mobil

ConocoPhillips

P/E ratio

12.01

8.97

Forward P/E ratio

9.80

8.62

Estimated annualized EPS growth for the next 5 years

8.48%

5.55%

Dividend yield

2.22%

3.54%

Profit margin

8.78%

5.85%

Gross margin

31.6%

25.5%

Upside movement potential

11.3%

13.5%

As we can see, ConocoPhillips is slightly better than Exxon. ConocoPhillips returned 36.9% in a year, while Exxon returned 40%. Exxon is trading 3.61% lower than its 52-week high, whereas ConocoPhillips is trading 8.03% lower. O-Metrix scores are 5.02 and 5.16, respectively. Both are brilliant companies beating the market, but I would prefer ConocoPhillips. It has a lower P/E ratio and offers a better yield.

Parker Hannifin Corp. (PH): Parker Hannifin just bought SSD Korea. As of the July 25 close, the Ohio-based company shows a trailing P/E ratio of 14.84, and a forward P/E ratio of 11.70. Analysts expect the company to have an 11.07% annual EPS growth in the next five years, while earnings increased by 78.38% this quarter. The stock is trading 11.26% lower than its 52-week high. With a profit margin of 8.41%, Parket Hannifin pays a dividend yield of 1.68%. SMA200 is 1.90%, and SMA50 is 0.73%. Target price is $107.75, which implies a 22.6% upside potential. Although debts are unstable, assets are doing all right. Its performance is truly impressive this year, as it returned 40.8% in the last twelve months and kept increasing its dividend quarter by quarter. I believe this upward trend is pretty solid, and the stock is undervalued.

American Capital Agency (AGNC): Cramer recommends Annaly Capital (NLY) instead, although it has been a pretty rough year for it. Here is a brief comparison between these two companies:

Current as of July 25 close.

American Capital

Annaly Capital

P/E ratio

4.19

7.1

Forward P/E ratio

6.07

7.5

Estimated annualized EPS growth for the next 5 years

2.00%

0.75%

Dividend yield

19.38%

14.82%

Although their EPS growth estimations are pretty poor, I believe these are quite conservative expectations, as the two companies had EPS growths of 48.02% and 47.72% in the last five years, respectively. Both companies leapfrogged in Mar. 2009. However, Annaly returned -3.4% in a year, while American Capital returned 44.5%. O-Metrix scores are 20.83 and 10.49, respectively. They can be extremely profitable investments but there is an inherent risk in both companie. Their debt-to assets ratio is at alarming rates. I would avoid both companies. However I think American Capital is slightly better Annaly.

Sprint Nextel Corp. (S): Looks like the dead giant is reborn. Sprint returned 38.4% since its dip in Nov. 2010. Analysts expect the company to have an EPS growth of 24.20% next year. Insider transactions for the last six months have increased by 29.42%, while the stock is trading 20.16% lower than its 52-week high. Target price is $5.80, which indicates a 12.6% increase potential. Earnings increased by 49.40% this quarter. P/S is 0.47, while SMA200 is 9.70%. Debt-to assets ratio is slightly going down for the last five quarters. Although net profit margin is awful (-9.27%), I believe the stock is pretty cheap. Moreover, it has a four-star rating from Morningstar. If Sprint Nextel can preserve its momentum, beating the market will be no sweat for the company. Like Cramer, I say “buy, buy, buy."

Caterpillar, Inc. (CAT): Caterpillar returned 50.9% in a year, and Cramer is bullish on this stock. As of July 25, the company was trading at a P/E ratio of 17.46, and a forward P/E ratio of 11.65. Analysts estimate a 21.20% annualized EPS growth for the next five years. Target price is $132.81, implying a 25.6% upside movement potential. With a profit margin of 8.00%, Caterpillar offers a dividend yield of 1.74%. ROE is 34.23%. Earnings increased by 190.36% this year, and 39.22% this quarter. The stock is trading 8.96% lower than its 52-week high. $1000 invested a year ago is about $1480 now. Debt-to assets ratio is nearly stable for the last five quarters. While SMA200 is 8.56%, SMA50 is 2.28%. Although there was a disappointment in recent earnings, its O-Metrix score of 7.88 is way above market average. Analysts give a 2.10 recommendation for the company (1=Buy, 5=Sell). Caterpillar is a trustworthy stock with an enjoyable momentum over two years old.

Tornier (TRNX) is a company that went up too much. It returned 44% in just five months. Estimated annualized EPS growth for the next five years is 17.50%. The stock is trading 13.13% lower than its 52-week high, while its gross margin is 71.83%. Target price is $29, which implies an about 11.5% upside movement potential. SMA200 is 13.90%, and earnings increased by 37.73% this quarter. However, it has a terrible profit margin of -22.74% with no dividend policy. Debts are starting to become a pain. SMA20 is -6.64%, whereas SMA50 is -5.19%. Operating margin is -4.1%. I agree with Cramer that it is time to move on.

Abbott Laboratories (ABT) is a truly admirable stock. Although it has been a rough year for Abbott, it returned 15.8% in just two quarters. Moreover, it just double topped. The healthcare company, as of the July 25 close, has a 16.03 P/E ratio, and a 10.56 forward P/E ratio. Analysts expect the company to have an 8.81% annual EPS growth in the next five years, which is quite reasonable when its 6.64% EPS growth of past five years is considered. Profit margin in 2010 was 12.3%, while it paid a 3.65% dividend yield. Earnings increased by 47.77% this quarter. Gross margin is 58.4%, and the stock is trading 2.39% lower than its 52-week high. SMA200 is 7.15%, while SMA50 is 0.81%. Average target price of $56.63 suggest a 9.2% increase potential. Debt-to assets ratio is slightly going down for the last four years. Yields are consistent, while O-Metrix score is 4.68. Moreover, it has a five-star rating from Morningstar. Insiders have been both selling stocks and exercising options for a while. It might be the time to collect profits. The upward momentum seems to be solid, and i think Abbott is a good stock for the long-term. However, a current price is slightly expensive.

Source: 3 Buy and 4 Sell Ideas by Cramer