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Jim Cramer is one of the most entertaining and reputable stock pickers over the globe. He is the host of Mad Money program on CNBC, and the co-founder of TheStreet.com. In his program, he examines viewer’s favorite stocks. In September 21’s Lightning Round, Cramer made nine calls. He was bullish on six of them this time, and bearish on the rest.

I have examined all of his stock mentions from a fundamental perspective, and added my opinion about them. I have applied my O-Metrix Grading System where possible, as well. Here is a fundamental analysis of these stocks from Cramer's September 21 Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Halliburton

HAL

Buy on Dip

7.46

Buy

Abbott Laboratories

ABT

Buy

5.25

Long-Term Buy

Bank of America

BAC

Avoid

N/A

Risky Buy

Flowserve

FLS

Avoid

7.87

Buy

Honeywell

HON

Buy

7.54

Buy

Tyco

TYC

Buy

5.13

Buy

Xcel

XEL

Buy

3.17

Buy After Pullback

Brown & Brown

BRO

Avoid

4.43

Hold

Entegris

ENTG

Buy

6.09

Long-Term Buy

Data obtained from Finviz/Morningstar, and is current as of September 21. You can download O-Metrix calculator, here.

Although Cramer likes Halliburton right here, he still expects it to go down by about 10% of here. Halliburton has a P/E ratio of 13.6, and a forward P/E ratio of 8.5, as of September 21. Analysts expect the company to have a 16.5% annual EPS growth for the next five years. With a profit margin of 11.4%, Halliburton pays a 1.03% dividend.

The stock returned 11.3% in the last twelve months, while it has an O-Metrix score of 7.46. Earnings increased by 54.01% this year, and 53.88% this quarter. Institutions hold 83.49% of the shares. Target price implies a 96.2% increase potential, whereas it is trading 39.13% lower than its 52-week high.

Sales increased by 35.29% this quarter. The debt-to assets ratio is going down for the last five quarters. Debt-to equity ratio is 0.3, far better than the industry average of 3.5. PEG value is 0.5. Moreover, Halliburton has a five-star rating from Morningstar. Current price offers a gorgeous entry point.

Cramer is bullish on Abbott as it yields a 3.7% dividend, and has growth. As of the September 21 close, it was trading at a P/E ratio of 15.7, and a forward P/E ratio of 10.4. Estimated annual EPS growth for the next five years is 10.0%. It offers a 3.71% dividend, while the profit margin is 13.8%.

Target price implies a 9.0% upside movement potential, whereas it is currently trading 3.75% lower than its 52-week high. Abbott returned -0.5% in a year, and it has an O-Metrix score of 5.25. Institutions own 64.88% of the shares. Earnings increased by 47.74% this quarter, while gross margin is 58.4%. Yields are awesome, and debt-to assets ratio is decreasing for the last five quarters.

Debt-to equity ratio is 0.5, better than the industry average of 0.8. While SMA50 is 1.42%, SMA200 is 4.90%. Moreover, it has a five-star rating from Morningstar. Abbott has been an outperformer, and I expect it to be an outperformer in the long-term.

Cramer commented.

Bank of America is not done going down. They're in bear market mode and I'm not recommending anyone buy a bank.

The bank shows a trailing P/E ratio of -4.2, and a forward P/E ratio of 5.2, as of Sep 21. Five-year annualized EPS growth forecast is 9.1%. With a thin dividend of 0.63%, Bank of America has a -18.6% profit margin.

Insiders hold only 0.02% of the shares, while it returned -52.5% in the last twelve months. The bank had a -430.83% EPS growth this quarter, and -28.55% this year. Debt-to equity ratio is 2.1, above the industry average of 1.7. ROA and ROE are -0.72% and -7.89%, respectively. Target price indicates an about 77.4% upside movement potential, whereas it is trading 58.22% lower than its 52-week high.

While SMA50 is -22.14%, SMA200 is -45.47%. I do not think Bank of America is the best financial stock in the market, but it has strong back-up from Warren Buffett. Therefore, this stock is more trustworthy than it used to be.

Cramer rather prefers Honeywell and Tyco instead of Flowserve, as Flowserve has recently hit its 52-week low. Here is a brief comparison between these three stocks:

Current as of September 21 close.

Flowserve

Honeywell

Tyco

P/E ratio

10.9

14.1

14.8

Forward P/E ratio

8.9

10.1

12.0

Estimated EPS growth for the next 5 years

14.0%

15.3%

11.5%

Dividend yield

1.60%

2.96%

2.27%

Profit margin

9.7%

7.0%

9.3%

Gross margin

33.9%

24.4%

37.9%

Upside movement potential

75.1%

39.3%

15.5%

I eliminate Tyco at first, as it is the poorest in terms of O-Metrix score, P/E-forward P/E ratios, and upside potential. Flowserve returned -28.8% in the last twelve months, while Honeywell returned -2.5%. Flowserve is trading 44.08% lower than its 52-week high, whereas Honeywell is trading 31.13% lower. O-Metrix scores of Flowserve and Honeywell are 7.87 and 7.54, respectively. Both of them are buys for me. Tyco is a buy, as well.

Cramer blessed Xcel as it has 4.1% yield, along with a healthy growth. Xcel was trading at a P/E ratio of 14.6, and a forward P/E ratio of 13.7, as of the Sep 21 close. Five-year annual EPS growth forecast is 4.8% for the next five years, which is fair given the 6.17% EPS growth of past five years. It offers a 4.18% dividend, while the profit margin is 7.7%.

O-Metrix score of Xcel is 3.17, whereas it returned 8.0% in the last twelve months. Target price implies a 4.3% increase potential, and it is trading 4.73% lower than its 52-week high. Institutions hold 63.05% of the shares. Debts are increasing for the last four years, as well as assets.

Insiders have been buying stocks for a while. SMA50 and SMA200 are 2.75% and 3.87%, respectively. Xcel is a good stock to go long. However, a pullback should be waited for.

Although Cramer admires Brown & Brown, he is not recommending it as it is a financial company. The Florida-based insurer, as of Sep 21, has a P/E ratio of 15.8, and a forward P/E ratio of 14.5. Analysts estimate an 11.67% annualized EPS growth for the next five years. Profit margin (16.2%) more than doubles the industry average of 8.0%, while it paid a 1.77% dividend last year.

Target price is $25.82, which implies a 48.3% upside movement potential. The stock is trading 35.41% lower than its 52-week high, while it returned -13.0% in a year. O-Metrix score is 4.43. The debt-to assets ratio is nearly stable since Q2 2010. Insider transactions have decreased by 27.83% within the last six months, whereas insiders own only 0.49% of the stock.

SMA50 is -15.44%, and SMA200 is -27.45%. ROA is 6.57%, while ROE is 10.61%. Brown & Brown is paying the same dividend since Nov 2008. 12 out of 16 analysts recommend holding, and I agree with them.

"I like technology right here. I would buy it [Entegris]." The company was trading at an admirable P/E ratio of 8.5, and a forward P/E ratio of 7.9, as of the Sep 21. Analysts expect the company to have an annual EPS growth of 10.0% in the next five years. It has no dividend policy, while the profit margin is 14.4%.

Entegris returned 50.5% in a year, whereas O-Metrix score is 6.09. Debts are buried into the ground within the last three years. Debt-to equity ratio is 0.0, better than the industry average of 0.2. Target price indicates an about 47.7% increase potential, and the stock is currently trading 37.90% lower than its 52-week high. ROA and ROE are 18.46% and 23.95%, respectively.

PEG value is 0.8. Institutions own 94.69% of the shares. Earnings increased by 72.67% this quarter, and 228.75% this year. Entegris promises a profitable future.

Source: 9 New Ideas By Cramer: 6 Buys, 3 Sells