5 Buy And Sell Ideas From Cramer's Lightning Round

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Includes: BRFS, C, CLB, CRR, EXC
by: Efsinvestment

Here are the last five stock mentions from Jim Cramer’s Lightning Round on September 26, along with my opinions about them. The O-Metrix Grading System is applied where possible.

Stock Name

Ticker

Cramer's Suggestion

O-Metrix Score

My Take

Citigroup Inc.

(NYSE:C)

Sell

7.44

Risky Buy

Brasil Foods

(NYSE:BRFS)

No Calls

0.40

Avoid

Carbo Ceramics

(NYSE:CRR)

Buy After Pullback

7.95

Risky Buy

Core Labs

(NYSE:CLB)

Buy After Pullback

4.51

Risky Buy

Exelon Corp.

(NYSE:EXC)

Buy

2.67

Long-Term Buy

Data from finviz/morningstar and is current as of Sept. 26 close. Download O-Metrix calculator here.

Cramer does not like Citigroup:

If you can get two days of strength, you have to sell it. ... There are so few bank stocks I believe in. These go down with Europe and don't go up with anything.

The New-York based bank shows a trailing P/E ratio of 7.5 and a forward P/E ratio of 5.2 as of September 26. Analysts estimate a 9.3% annual EPS growth for the next five years, which sounds irrational given the -37.85% EPS growth of past 5 years. With a profit margin of 12.3%, it pays a razor-thin dividend of 0.15%.

The O-Metrix score for Citigroup is 7.44, while it returned -31.0% in the last twelve months. SMA50 and SMA200 are -14.57% and -35.30%, respectively. Insiders hold only 0.01% of the stock. Target price implies a 77.8% upside movement potential, whereas it is currently trading 48.09% lower than its 52-week high. While ROA is 0.50%, ROE is 5.94%. ROI is 1.56%. Citigroup is extremely volatile with a Beta value of 2.57. I wouldn’t put my money in a stock with these indicators, but if you believe in recovery, this may be your stock.

Cramer asked for time to do some research on Brasil Foods before making a call. The company was trading at a P/E ratio of 19.3 and a forward P/E ratio of 13.1 as of September 26. Estimated annual EPS growth for the next five years is 1.3%. It has no dividend policy, while the profit margin (5.4%) is slightly better than the industry average of 3.7%.

Target price is $18.22, indicating about a 3.0% upside potential. The stock is currently trading 16.44% lower than its 52-week high, whereas it has an O-Metrix score of 0.40. Brasil Foods returned 19.9% in the last twelve months, and PEG value is 10.3. The debt-to-assets ratio is extremely unstable, while cash flow is not doing well. Gross margin and operating margin are 22.3% and 7.5%, respectively. SMA50 is -6.99%, while SMA200 is -2.24%. P/E ratio, P/B (2.0), and P/S (1.1) are alarming red flags. While ROA is 7.44%, ROE is 10.56%. ROI is 8.91%. 6 out of 13 analysts recommend holding. This stock is too risky, so stay away.

Cramer likes Core Labs more than Carbo:

Carbo is a good company, but I have to like Core Labs more ... but up $3, I'm not going to pull the trigger on a stock up that much ... let it come in.

Here is a brief comparison of these two stocks:

Current as of September 26 close.

Carbo

Core Labs

P/E ratio

27.0

29.2

Forward P/E ratio

15.8

20.5

Estimated EPS growth for the next 5 years

33.3%

21.05%

Dividend yield

0.75%

1.40%

Profit margin

18.8%

19.7%

Gross margin

39.9%

34.7%

Upside movement potential

44.2%

16.5%

Carbo is trading 27.76% lower than its 52-week high, while Core Labs is trading 12.07% lower. O-Metrix scores of Carbo and Core Labs are 7.95 and 4.51, respectively. Carbo returned 62.8% in the last twelve months, whereas Core Labs returned 19.8%. Both of their EPS growth estimates sound irrational with these indicators, especially that of Carbo. Core seems a more reasonable buy. Buy at your risk.

Exelon returned 0.2% in a year, and Cramer is bullish on this stock. The Illinois-based company has a P/E ratio of 10.6, and a forward P/E ratio of 14.2, as of the September 26 close. Analysts expect the company to have a 1.7% annualized EPS growth in the next five years, which sounds conservative given the 22.41% EPS growth of last five years. With a profit margin of 13.7%, and a dividend of 4.94%, Exelon is a charming stock for dividend lovers.

The O-Metrix score for Exelon is 2.67, which, I believe, should be higher as EPS growth estimate sounds truly conservative. Target price is $46.32, implying a 7.5% increase potential. The stock is trading only 3.58% lower than its 52-week high, whereas ınstitutions own 0.05% of the shares. Debts and assets are unstable, while cash flow is terrible. PEG value is 8.2.

On the other hand, earnings increased by 38.90% this quarter. Gross margin is 61.1%, and ROE is 19.47%. SMA20, SMA50, and SMA200 are 0.61%, 1.30% and 4.59%, respectively. Moreover, it has a four-star rating from Morningstar. Exelon should outperform in the future, as the demand for low-cost electricity reaches vital rates.

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