Sexy Tech Stock
For "Speculation Friday," Cramer declared Netgear (NTGR) to be the most unexpectedly sexy tech stock out there. He said after consolidation in its industry, Netgear is now in a happy duopoly with Cisco (CSCO), and its Linksys brand, in the home-networking arena.
Netgear currently commands 30% market share in the home-networking space, and is making money hand over fist as consumers upgrade to the faster new wireless-N standard, said Cramer. The company is also branching out into new products like media players and IPTV products that stream Internet content to HDTVs.
Netgear is also expanding beyond the consumer market, said Cramer, and into the small- and medium-size business arena as well as striking deals with cable providers to become the default cable modem of choice with millions of households.Netgear executives expect the company to double revenue over the next five years, and is on track to do so after delivering a six-cent-a-share earnings beat on revenue up 35% year over year when it last reported. Cramer said Netgear trades at only 13 times earnings, and only 10 times earnings when backing out the company's cash on hand. Netgear currently has an 18% long-term growth rate.