Cramer's 'Mad Money' Recap: Sure-Fit Stocks

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Just like any other year, this year many Americans made the resolution to lose weight. Therefore, the first three months of the year is the best time to own weight-loss companies, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

Cramer named Life Time Fitness (LTM Quote) as his "No. 1, best-of-breed, health club pick," saying he is a "huge fan" of this weight-loss stock.

The health fitness business is a big industry that's getting bigger, he said. And as the weight-loss play is about people trying and failing time and time again to lose weight, it is everlasting, Cramer added.

Of the two high-growth fitness clubs, Cramer prefers Life Time to Town Sports (CLUB Quote).

Not only does Life Time have better operating margins and higher revenue per member than Town Sports, but also based on its growth, it is not an expensive stock, he said.

In addition, Life Time is in a better position with a better business model and has larger clubs with better amenities, Cramer said.

It is true that Prudential recently gave Life Time an underweight rating, meaning a sell, he said. But "this one deserves to be a buy."

Even though it will cost more for Life Time to expand into wealthier areas, that's where the company will be able to charge outrageous prices and make more money, Cramer said, arguing Prudential's reasoning for its downgrade.

"Go with Life Time," he said.

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