Stocks discussed in the in-depth session of Jim Cramer’s Mad Money TV program, Tuesday April 25th. Click on a stock ticker for more analysis:
Wolverine World Wide (NYSE: WWW): Hush Puppies, this footwear manufacturer's main brand, has already hit the tipping point. Other product lines -- Merrill and Caterpillar boots -- will also do well. Stock trades at 17x 2007 estimated earnings. Q1 results were strong, causing the stock to jump. Buy the stock on a pull-back.
Domino's Pizza, Inc. (DPZ): Interview with CEO David Brandon. Jim Cramer's commented that Domino's is growing earnings at 11% and is trading at 18x earnings, versus Papa John's International (Nasdaq: PZZA) which trades at 26x earnings. Brandon: "We'll get the valuation we deserve".
Comfort Systems USA, Inc. (NYSE: FIX), United Technologies Corporation's (NYSE: UTX) and Goodman Global, Inc (NYSE: GGL): A lesson in how to generate stock ideas -- review companies' conference calls! (You can find conference call transcripts on Seeking Alpha here or just by searching by stock ticker.) Cramer was reviewing United Technologies Corporation's (NYSE: UTX) conference call, during which the company stated that its heating, ventillation & air conditioning business grew by double digits on higher prices. Looking for companies in that space, Cramer found Goodman Global, Inc (NYSE: GGL), but it plays in the residential market, whereas UTX plays in the commercial market. Comfort Systems USA, Inc. (NYSE: FIX), however, does play in the commercial market, and appears to be undervalued.
Fluor Corporation (NYSE: FLR), TXU Corp. (NYSE: TXU): The energy infrastructure sector is in a fantastic long-term bull market. TXU Corp. (NYSE: TXU) announced last week that it plans to build 11 new coal plants at a cost of $10 billion. TXU has chosen Fluor Corporation (NYSE: FLR) and Bechtel (privately owned) for the work. Subcontractors are Caterpillar Inc. (NYSE: CAT) and Terex Corporation (NYSE: TEX). Other beneficiaries: McDermott International, Inc. (NYSE: MDR) and Foster Wheeler Ltd. (NASDAQ: FWLT) sell pollution-reducing equipment for coal plants, ABB Ltd. (NYSE: ABB) provides power plant automation systems, InfraSource Services, Inc (NYSE: IFS) provides transmission infrastructure, and SPX Corporation (NYSE: SPW) provides cooling towers.