Beating Expectations Consistently
Cramer told viewers he has two underpromising, overdelivering "UPOD artists" that should be bought:
Teledyne Technologies (TDY Quote - Cramer on TDY - Stock Picks) and
Ansys (ANSS Quote - Cramer on ANSS - Stock Picks).
"Upod works because the bedrock predictor is the trumping of earnings estimates," he said.
The first upod artist, Teledyne, has tapped into two of Cramer's long-term bull markets: aerospace and oil. Over the past two years, it's beaten estimates by an average of 15% every quarter, and it has taken control of its future through smart acquisitions, he said.
The stock is cheap, but if investors wait, they might be able to get in at a better price, so he said he'd be cautious with this one.
Ansys is the "market leader" in making simulation software and services, he said. Most of its business is done overseas, and 68% of its business is recurring, Cramer said. Moreover, it has met or exceeded expectations 40 consecutive times.
While the stock is not cheap, it has a 19% growth rate and deserves a higher multiple, according to Cramer.
The single best way to know who will beat earnings in the future is finding companies that have done so consistently in the past, he said. Teledyne and Ansys are two such companies, but even without their track records, Cramer believes they'd still be worth owning.
TheStreet.com Staff
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