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Markets started the week with a positive momentum, as there is an optimistic atmosphere spreading through. I believe that it is too early to wrap ourselves into such an environment, because the problems of the eurozone are still there, and I don’t see much effort to put things back on track. European markets should be stabilized first; otherwise this confident environment will be extremely fragile.

In November 28th's Lightning Round segment, Jim Cramer made several calls, 6 of which are worth a deeper look. He turned bearish this time, making two bullish and four bearish calls. 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 applicable, as well. Here is a fundamental analysis of these stocks from Cramer's November 28 Lightning Round:

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Prosperity Bancshares

(PRSP)

Avoid

4.35

Buy

Sigma-Aldrich

(NASDAQ:SIAL)

Avoid

3.12

Hold

Omnicom Group

(NYSE:OMC)

Hold

4.36

Buy

Wynn Resorts

(NASDAQ:WYNN)

Sell

3.68

Hold

Ford

(NYSE:F)

Hold

4.75

Buy

US Bancorp

(NYSE:USB)

Buy

5.61

Buy

(Data obtained from Finviz/Morningstar, and is current as of November 29. You can download the O-Metrix calculator here.)

Prosperity Bancshares

Although the stock is doing quite good, Cramer doesn’t like bank stocks for the time being. It has a P/E ratio of 12.5, and a forward P/E ratio of 12.1, as of November 29. Five-year annual EPS growth forecast is 8.6%. Profit margin (36.2%) crushes the industry average of 4.3%, and it sports a 2.12% dividend.

Prosperity Bancshares had a fatal downfall from mid-July to October this year, but it has been showing an amazing recovery since then. The company keeps bumping its yield, plus the debt-to equity ratio (0.1) is impressive, way too lower than the industry average of 1.8. Moreover, it raised its dividend by 11.4% to $0.195 a share, payable on 14th of December. A Beta value of 0.81 shows a quite stable environment. Debts are not really a problem, and cash flow is doing good. Based on these indicators, Prosperity Bancshares has an average O-Metrix score of 4.35. This stock is in a recovery mode, and it will reward its shareholders in some time.

Sigma-Aldrich

Although this “used to be a great growth stock,” Cramer no longer wants to own it. The company was trading at a P/E ratio of 16.9, and a forward P/E ratio of 15.0 as of November 29. Estimated annualized EPS growth is 8.8% for the next five years. It has a 1.18% dividend, while the profit margin (17.9%) is well above the industry average of 7.7%.

The company kept raising dividends since its first yield in 1990, and it has been doing great since the market dip in the Q1 2009. While these are signs of a quite healthy company, the impressive cash flow is another good sign. Beta value is 0.88, and debts are far from being a threat. Debt-to equity (0.1) is also admirable, lower than the industry average of 1.2. There are certainly much better stocks in the market, but Sigma-Aldrich is worth holding with moderate growth and dividend. Based on these numbers, the company has an O-Metrix score of 3.12.

Omnicom

Cramer made the following remarks on Omnicom:

It is a very well-run advertising company. I'm not going to recommend selling it here. It doesn't have a good yield here, but if it fell further, it would. I want to hold that, but don't go crazy on advertising...it involves a lot of discretionary spending on the part of companies.

The New York-based Omnicom shows a trailing P/E ratio of 12.7, and a forward P/E ratio of 11.2, as of November 29. Five-year annual EPS growth forecast is 8.0%. Dividend yield is 2.44%, and profit margin is 6.8%, above the industry average of 6.7%.

Omnicom has an O-Metrix score of 4.36, and it has a four-star rating from Morningstar. The stock had a recession between 2007 and 2009, but started boosting its dividend at grand scales after that. In March 2010, the company raised its dividend from $0.15 to $0.20 per share, or 33.3% in percentage. Assets and cash flow are doing all right. There’s limited risk, and investors can make some money here. Omnicom is one of the best in its industry.

Wynn Resorts

The Mad Money host believes that Wynn’s chart is “horrible”, so you need to sell it. It was trading at a P/E ratio of 26.8, and a forward P/E ratio of 18.6. Analysts expect the company to have a 15.0% annualized EPS growth in the next five years. With a profit margin of 10.4%, it offers a 1.75% dividend.

As a stock, Wynn has not been doing quite good. Insiders hold only 0.03% of the shares, and insider transactions have decreased by 21.06% within the last six months. Wynn is in serious debt, while gross margin is 37.2%. The stock has a terrible Beta value of 2.46. The triangle formation has taken a path to the south, and dividends show a depression in the stock. This is not the kind of stock to own for sure, but selling at this low will do more harm. Do not buy a stock at the top, do not sell a stock at the dip. Just wait for it to go up a bit. Wynn has a D-Grade O-Metrix score of 3.68.

Ford

Ford is “worth holding through the slog,” Cramer states, as the stock is so cheap. The auto manufacturer has a remarkable P/E ratio of 6.2, and a forward P/E ratio of 6.2. Analysts estimate a 5.9% annualized EPS growth for the next five years. It pays no dividend, and the profit margin (5.1%) is above the industry average of 3.6%.

Ford has been the ultimate loser for a long time, and it is hard to tell if it could reverse its trend in short term. However, it is obvious that Ford is a screaming bargain at this level. Sales increased in October, and the extreme debt-to assets ratio is coming down for the last five quarters straight. Although the debt-to equity ratio (15.9) itself is a disaster, Ford is worth counting on with these other solid indicators. Based on these numbers, Ford has an O-Metrix score of 4.75. It can reward you after the eurozone crisis, so hold onto this stock.

U.S. Bancorp

U.S. Bancorp is the only financial Cramer recommends. The Minnesota-based bank, as of November 29, was trading at a P/E ratio of 10.6, and a forward P/E ratio of 9.4. Estimated annual EPS growth is 9.2% for the next five years. It sports a 2.02% dividend, while the profit margin (23.6%) crushes the industry average of 4.3%.

The company took one of the biggest hits in the Lehman disaster, losing more than 75% of its value in just five months, and having to cut its dividend from $0.43 to $0.05 per share. However, it has increased its dividend in March 2011 to $0.13, a 160% boost in percentage. O-Metrix score is 5.61, while Beta value is 0.99. Moreover, the stock is trading at $25 currently. Assets look good, as well as cash flow. Debt-to equity ratio (1.0) is also appetizing, which is nearly doubles the industry average of 1.8. U.S. Bancorp seems to be one of the best in its industry, and current price offers a profitable entry point.

Source: A Look At 6 Trading Ideas By Jim Cramer