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Jim Cramer, the Mad Money host and the co-founder of TheStreet.com, is one of the most entertaining stock pickers in the market. He is pretty good at presenting his shows, along with his ability to pick stocks. In Sep 20’s Lightning Round program, he made only five calls. After tons of stock picks that he’s done within the last few days, I was truly surprised. He made three bullish, and two bearish calls this time. I have investigated all of these stocks from a fundamental perspective, adding my opinion about them. I have applied my O-Metrix Grading System where possible. Here is a fundamental analysis of these stocks from Cramer's Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

GT Advanced Technologies

GTAT

Sell

9.43

Buy Later

Hudson City Bancorp

HCBK

Avoid

N/A

Avoid

Alcoa

AA

Buy

5.17

Buy

EXCO Resources

XCO

Buy

5.83

Buy

CenturyLink

CTL

Conditional Buy

2.29

Avoid

Cramer is bearish on the solar equipment business; therefore, he recommends selling GT Advanced. It was trading at a P/E ratio of 5.9, and a forward P/E ratio of 4.7, as of the Sep 20 close. Estimated annualized EPS growth for the next five years is 10.00%, which sounds conservative given the 84.73% EPS growth of past five years. It has no dividend policy, while the profit margin is 21.1%.

Target price is $16.88, which implies a 101% upside movement potential. Earnings increased by 257.47% this quarter, and 106.66% this year. The stock is currently trading 52.11% lower than its 52-week high, whereas it has an O-Metrix score of 9.43. ROA, ROE, and ROI are 21.66%, 91.54% and 64.64%, respectively. Operating margin is 32.7%, while PEG value is 0.5. P/S is 1.2, and debt-to equity ratio is 0.3, both of which are way below their industry averages. Sales rose by 70.97% this quarter, and insider transactions have increased by 22.84% within the last six months. However, the solar industry is facing a serious oversupply situation. Consequently, the stocks were hit severely. The fundamentals look good, but I would wait and see, before I buy.

Cramer is bearish on banks, including Hudson City Bancorp. The bank has a P/E ratio of -13.4, and a forward P/E ratio of 7.6, as of Sep. 20. Analysts estimate a 5.0% annual EPS growth for the next five years. Although profit margin (-16.8%) is horrible, dividend yield is enjoyable (5.39%).

Hudson City returned -51.4% in the last twelve months, while yields are decreasing. Insiders own only 1.28% of the shares, and sales decreased by 22.97% this quarter. ROA and ROE are -0.38% and -4.10%, respectively. PEG value is 1.5. While SMA50 is -12.84%, SMA200 is -36.03%. Target price is $8.88, indicating a 49.4% increase potential. Earnings decreased by 32.72% this quarter, and it is trading 53.74% lower than its 52-week high. Debt-to equity ratio is 2.8, way above the industry average of 2.1. Moreover, the stock just double bottomed. Stay away from it.

Everyone keeps cutting numbers but I'm taking a stand. I think it [Alcoa] represents good value.

As of Sep. 20, Alcoa shows a trailing P/E ratio of 13.3, and a forward P/E ratio of 8.1. Finviz analysts estimate a 70.8% annualized EPS growth for the next five years, while those of Morningstar estimate 3.0%. With a profit margin of 4.0%, it offered a 1.07% dividend last year.

According to the market derived estimation of Alcoa’s 5-year annualized EPS growth (10.0%), the stock has an O-Metrix score of 5.17. Alcoa is currently trading 38.85% lower than its 52-week high, while it returned 0.7% in a year. The debt-to assets ratio is slightly going down for the last five quarters. Earnings increased by 121.72% this quarter, and 124.28% this year. Target price is $17.65, implying a 56.8% upside movement potential. Institutions hold 65.01% of the shares. Profit margin and ROE (6.7%) are moderate green flags. I think this stock is in a good recovery mode, so consider adding Alcoa to your portfolio.

Cramer recommends home-gamers to buy Exco Resources right here, as it is too undervalued. Exco has a P/E ratio of 28.1, and a forward P/E ratio of 11.3, as of the Sep 20 close. Five-year annual EPS growth forecast is 21.67%, which sounds too optimistic when its -10.09% EPS growth of past five years is considered. It pays a 1.33% dividend, while the profit margin is 15.2%.

The stock is trading 42.33% lower than its 52-week high, whereas O-Metrix score is 5.83. Target price is $19.71, implying a 63.4% increase potential. Earnings decreased by 85.54% this quarter. While SMA50 is -14.59%, SMA200 is -33.93%. Insiders own only 1.41% of the stock, whereas it returned -14.9% in the last twelve months. Debts and assets are extremely volatile, and cash flow is not doing so good.

On the other hand, gross margin is 73.3%. PEG value is 0.5, and earnings increased by 232.32% this year. Sales rose by 74.77% this quarter. Institutions own 83.26% of the stock, whereas insiders have been buying large amounts of stocks for a while. I believe Exco is an eve of a bounce. It might be a profitable buy.

It [CenturyLink] has a higher yield but lower growth than the big boys. If the dividend is fine, then I'll recommend it.

CenturyLink shows a trailing P/E ratio of 17.0, and a forward P/E ratio of 18.6, as of Sep. 20. Analysts expect the company to have a -0.2% annual EPS growth in the next five years. Profit margin (8.0%) is slightly lower than the industry average of 10.0%, while it offers an outstanding dividend of 8.37%.

Target price is $43.48, which indicates a 25.5% upside movement potential. O-Metrix score of CenturyLink is 2.29, whereas it is currently trading 21.99% lower than its 52-week high. Debts have nearly tripled within just one year. Earnings decreased by 78.54% this quarter. Insiders own only 0.49% of the stock, while it returned -12.0% in a year. SMA50 and SMA200 are -1.02% and -11.37%, respectively. While ROA is 2.00%, ROE is 4.94%. Moreover, CenturyLink is on my dividend danger zone list. There are far more profitable stocks in the market.

Source: Lightning Round: 3 Buy And 2 Sell Ideas From Jim Cramer