10 New Buy Ideas From Jim Cramer (Part 1)

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Includes: AVGO, CVX, DD, DOW, ETN, UPS
by: Vatalyst

Television star Jim Cramer of CNBC’s investment show “Mad Money” recently added several positions to his charitable trust. The stocks represent a variety of industries and sectors. I take a look at some of the metrics and headlines of the 10 recently purchased stocks to see how they look. I review the first five in this article.

United Parcel Service, Inc. (NYSE:UPS) – Cramer opened his position with 600 shares of this international package delivery company. It is currently trading near $65. Its closing price has fluctuated from $60.74 to $77 over the past 52 weeks. Its dividend yield is 3.3 percent or $2.08 a share. A quarterly payment of $0.52 was declared in August. It has paid quarterly dividends since 2000. Earnings per share is $4.06, and price to earnings ratio is 16.08. Profit margin is 7.90 percent. Quarterly revenue growth is 8.10 percent, and quarterly earnings growth is 25.80 percent. Total debt is $12.17 billion, and total cash is $5.64 billion. Market capitalization is $63.53 billion.

Its competitor FedEx Corporation (NYSE:FDX) is currently trading near $69. It has ranged from $64.55 to $98.66 over the past 52 weeks. FDX also pays a dividend. Its yield is 0.80 percent or $0.52 a share. Its most recent quarterly payment of $0.13 was announced in September. Earnings per share is $4.83,and price to earnings ratio is 14.57. Profit margin is only 3.81 percent. Quarterly revenue growth is 11.30 percent, and quarterly earnings growth is 22.10 percent. FDX shows $1.67 billion in total debt and $1.96 billion in total cash. Market capitalization is $22.02 billion.

UPS’s revenue is expected to increase next quarter and next year. Analysts seem to like the stock. The most frequent rating is “Strong Buy” with “Buy” ratings a close second. Some investment professionals prefer FDX because of its higher earnings per share and lower price to earnings ratio, but I understand why Cramer picked UPS. UPS is trading near the lower end of its 52-week range. Its dividend is more , and its growth is steady and methodical.

Broadcom Corp. (BRCM) – This communications semiconductor manufacturer is trading near $34 with a 52-week range of $30.71 to $47.39. BRCM’s dividend yield is 1.10 percent or $0.36. Its short dividend payment record is only two years old. In August, it declared a quarterly payment of $0.09. Its profit margin is 13.9 percent. Earnings per share is $1.77, and price to earnings ratio is 19.64. Quarterly revenue has grown by 12.30 percent, but quarterly earnings have declined by 37.10 percent. BRCM shows total debt of $697 million and total cash of $2.63 billion. Market capitalization is $18.44 billion.

Its competitor QUALCOMM Inc. (NASDAQ:QCOM) is trading near $50, which is in the middle of its 52-week range of $42.45 to $59.84. Its dividend yield is 1.80 percent or $0.86 a share. It has been paying a dividend for 20 years. Its most recent quarterly payment of $0.215 was announced in August. QCOM’s earnings per share is $2.44, and price to earnings ratio is slightly higher at 20.80. QCOM’s profit margin is 29.48 percent. Quarterly revenue and quarterly earnings have grown 34.20 percent and 34.90 percent, respectively. Total debt is $1.28 billion, and total cash is $10.73 billion. Market capitalization is $85.28 bllion.

BRCM is trading low, and it is less expensive than QCOM. Throughout the year, analysts have either initiated or upgraded recommendations. Earnings and revenue are expected to increase next quarter and next year. Cramer purchased 500 shares for the trust. It should prove to be a nice addition.

Chevron Corporation (NYSE:CVX) – The oil, chemicals, mining, and energy giant with operations worldwide is trading near $93. Cramer opened his position with 500 shares. CVX has fluctuated from $80.41 to $109.94 over the past 52 weeks. Its attractive dividend yield is 3.4 percent or $3.12 a share, and its long, consistent payment history spans over 40 years. In August, CVX declared a quarterly payment of $0.78. Earnings per share is $11.45, and price to earnings ratio is 8.27. Its profit margin is 10.61 percent. Quarterly revenue has grown by 30.60 percent, and quarterly earnings have grown by 42.90 percent. Total debt is a little high at $11.52 billion. Total cash is $17.96 billion. Market capitalization is $186.84 billion.

Its competitor BP Plc (NYSE:BP), with market capitalization of $115.19 billion, is trading near $36.50 a share. Its 52-week range is $33.62 to $49.50. BP boasts a dividend yield of 4.70 percent or $1.68 and a payment history of almost 25 years. Most recently, company management announced in August a quarterly payment of $0.13925. Earnings per share is $6.28, and price to earnings ratio is 5.84. BP’s profit margin is 5.96 percent. Quarterly revenue growth is 37.5 percent. Quarterly earnings information was not available. Total debt is very high at $46.98 billion, and total cash is $20.16 billion.

In August, Standpoint Research upgraded its “Hold” recommendation to “Accumulate.” Other recommendations trend toward “Buy” and “Strong Buy.” Revenue is expected to increase. CVX is well priced, positioned for growth, and committed to paying dividends. It should perform steadily for the trust.

Eaton Corporation (NYSE:ETN) – This worldwide power management corporation is trading near $37. It has closed between $33.09 and $56.49 over the past 52 weeks. ETN’s dividend yield is 3.80 percent or $1.36. It has paid dividends for 25 years. Its most recent quarterly payment of $0.34 was announced in August. Earnings per share is $3.41, and price to earnings ratio is 11. Profit margin is 7.74 percent. Quarterly revenue growth is 21.10 percent, and quarterly earnings growth is 48.70 percent. Total debt is $3.77 billion, and total cash is $883 million. Market capitalization is $12.67 billion.

Its competitor Johnson Controls Inc. (NYSE:JCI) is trading near $27 a share. Its dividend yield is a little less at 2.4 percent or $0.64 a share, and it has also paid a dividend for about 25 years. In September, JCI declared a $0.16 quarterly dividend. JCI’s profit margin is very modest at 3.93 percent. Quarterly revenue growth is 21.40 percent, but quarterly earnings have declined by 14.60 perent. Total debt at $5.18 billion is excessive. Total cash is $335 million. JCI’s market capitalization is $18.80 billion.

Some say ETN is trading at “bargain basement” prices. Industry professionals like its balance sheet. Analysts have either initiated or upgraded recommendations. I like this stock. It is a nice foundation stock with a nice outlook that appears to be trading at quite a value, and it pays a very nice dividend. It is poised to take advantage of imminent economic recovery and produce over the long-term.

EI DuPont de Nemours & Co. (NYSE:DD) – This diversified chemicals manufacturer is trading near $41. Its closing price has fluctuated from $37.10 to $57 over the past year. DD’s dividend yield is 4.10 percent or $1.64. DD boasts a 50-year payment history. In August, management declared a $0.41 quarterly dividend. Earnings per share is $3.61, and price to earnings ratio is 11.42. Its profit margin is modest at 9.58 percent. Quarterly revenue and quarterly earnings have grown by 19.20 percent and 5.10 percent respectively. Total debt is high at $14.80 billion, and total cash is 2.48 billion. Market capitalization is $38.13 billion.

Its rival, The Dow Chemical Company (NYSE:DOW), is trading near $24 a share, which is toward the lower end of its 52-week range of $20.61 to $42.23. Its dividend yield is attractive at 4.5 percent or $1. Its 24-year payment history is also attractive. Management declared a $0.25 quarterly dividend in September. Earnings per share is $2.18, and price to earnings ratio is 11.23. DOW’s profit margin is more modest at 5.02 percent. Quarterly revenue growth is 17.80 percent, and quarterly earnings growth is 63.90 percent. Total debt is high at $20.90 billion, and total cash is $2.12 billion. Its market capitalization is $28.36 billion.

DD is hailed as a large cap with an attractive upside potential. Options traders are said to be more bullish now than at any other time in the past two year, thanks to DD’s dividend. Most analyst recommendations trend toward “Strong Buy” and “Buy.” Some recommending holding the stock.

DD is another solid foundation stock that pays a nice dividend. Its outlook for growth is steady. Cramer’s initial 500 shares should place the trust in a position to realize the benefits of an imminent broader market recovery.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

>>Click here for part 2>>