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Jim Cramer is one of the most reputable and joyful stock pickers on the street. Cramer seeks stocks that are performing remarkably in this uncertain situation, recommending them to keep your money safe. He mentioned four stocks during his Aug 18th Lightning Round program, making three bullish calls and one bearish call. I have examined these stocks from a fundamental perspective, adding my O-Metrix grading system where possible.

Here is fundamental analysis of these stocks from Cramer's Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Sanofi-Aventis

SNY

Buy

2.44

Hold

Bank of Montreal

BMO

Buy

4.89

Buy on Dip

Aeropostale, Inc.

ARO

Avoid

8.05

Long-Term Buy

EOG Resources

EOG

Buy

4.43

Hold

Cramer likes the dividend of Sanofi-Aventis, and he wants to “pull the trigger”. The company shows a trailing P/E ratio of 16.3, and a forward P/E ratio of 7.9, as of the Aug 18th close. Analysts estimate a 2.1% annualized EPS growth for the next five years, which sounds conservative when its 20.04% EPS growth of past five years is considered. With a profit margin of 13.4%, shareholders enjoyed a 3.82% dividend.

O-Metrix score of the company is 2.44, while it is currently trading 15.28% lower than its 52-week high. Target price indicates an approximate 36.5% upside potential, whereas it returned 18.3% in the last twelve months. Debt-to assets ratio is nearly stable for the last five years. ROE is 8.1%, and operating margin is 12.9%, both of which are way below industry averages. Earnings decreased by 41.52% this quarter, and 21.55% this year. Hold if you own it. It is a nifty stock for dividend lovers.

Cramer is bullish on Canadian banks including Bank of Montreal, although he is not optimistic about U.S. banks for the time being. The Toronto-based bank, as of the Aug 18th close, was trading at a P/E ratio of 11.3, and a forward P/E ratio of 10.0. Analysts expect the company to have an annualized EPS growth of 5.5% in the next five years, which is reasonable when its 2.70% EPS growth of past 5 years is considered. With a profit margin of 22.4%, and a dividend yield of 4.93%, Bank of Montreal is an enjoyable stock for dividend lovers.

The company returned 3.4% in a year, while it is trading 10.70% lower than its 52-week high. O-Metrix score of the bank is 4.89, and institutions hold 50.99% of the stock. Earnings increased by 52.46% this year, whereas target price indicates a 14.9% upside movement potential. P/B is 1.9 and P/S is 2.7, both of which are below industry averages. While ROE is 15.22%, ROI is 11.90%. Analysts give a 1.7 recommendation for BMO Financial (1=Buy, 3=Sell). Moreover, it recently multiple topped. I would wait for a pullback.

Cramer commented about Aeropostale:

I do not want any of these teen retailers. They are way too risky.

The New York-based retailer has a remarkable P/E ratio of 5.5, and a forward P/E ratio of 8.9, as of the Aug 18th close. Estimated annualized EPS growth for the next five years is 11.6%, which sounds conservative given the 30.18% EPS growth of past five years. With a profit margin of 8.4%, Aeropostale offers no dividend yield.

Insider transactions have increased by 24.72% in the last six months, while institutions own 97.41% of the stock. The company has an admirable O-Metrix score of 8.05, and it is currently trading 61.52% lower than its 52-week high. ROA, ROE, and ROI are28.66%, 50.22% and 50.22%, respectively. Target price is $15.80, which implies an approximate 48% increase potential.

The company returned -54.1% in the last twelve months, whereas it has no debts for the last five years. P/S is 0.5 and P/B is 2.9, both of which are below industry averages. Although this stock is totally capable of beating the market, it has been a truly rough year for it. However, I believe that it will outperform in the future.

Cramer recommends buying EOG Resources, as it was down $7 yesterday. The company shows a trailing P/E ratio of 54.9, and a forward P/E ratio of 14.9, as of Aug 18. Analysts expect the company to have a 30.2% annual EPS growth in the next five years, which sounds truly utopic given the -34.24% EPS growth of last five years. With a profit margin of 5.3%, EOG offers a 0.73% dividend.

O-Metrix score of the company is 4.43, while it is currently trading 27.30% lower than its 52-week high. Target price is $124.75, indicating a 41.7% upside movement potential. Institutions own 98.44% of the stock, and it returned -4.2% in the last twelve months. Debt-to assets ratio is going up for the last five years. ROE is 3.7%, and operating margin is 13.1%, both of which are way below industry averages. P/B and P/S are 2.0 and 2.9, respectively. Long-term EPS growth estimation is highly exaggerated, and P/E ratio does not fit my criteria.

Find more information on O-Metrix Grading System here.

Source: 4 Trading Ideas by Jim Cramer