This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Cramer's 'Mad Money' Recap: Next Week's Game Plan (Final)

Stocks in this article: WAGSHLDHDBPT

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.

Turnaround Story

"Never dig in your heels when it comes to a stock," Cramer told viewers, as he once again changed course on Walgreens (WAG), one of the nation's largest pharmacy chains.

Cramer said he used to like Walgreens, but after cut-throat competition caused the company to deliver a four-cent-a-share earnings miss on Jun 22, Cramer went bearish.

So what's changed? Cramer said Walgreens has gotten its act together and just recently reported a five-cent-a-share earnings beat on a 7.4% rise in revenues and better same store sales. In addition, the company reported a 5.3% uptick in sales for September.

Cramer said the turn in Walgreens is for real. Management has stopped putting up new stores, which take three to four years to break even, and is instead focusing on making its existing stores more profitable. Walgreens' specialty pharmacy business is also improving by drastically cutting costs.

Walgreens currently trades at just 13 times earnings, while the company historically sells at 16 times earnings. Cramer said that makes the stock a buy, despite its huge run-up over the past month.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,806.45 -8.49 -0.05%
S&P 500 2,068.45 +1.42 0.07%
NASDAQ 4,769.6430 +11.3910 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs