NEW YORK ( TheStreet) -- "The X factor is not just for reality TV," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said when it comes to stocks, some companies have "it" and others simply don't.
What's the X factor? Cramer said it's that little something special that makes investors want to pay up for some stocks, but not others. Something cool that cannot quite be explained. Cramer said X factor companies not only have great earnings and growth but also have that little something extra as well.Take Amazon.com (AMZN). Cramer said Amazon rallied 1.6% today to a new high on no news to speak of. He said other companies, like Panera Bread (PNRA) and Chipotle Mexican Grill (CMG) have the X factor, that's why they trade at 34 and 44 times earnings respectively. Companies like Microsoft (MSFT - Get Report) and Research In Motion (RIMM), no X factor, said Cramer. Meanwhile, electric car battery maker Polypore (PPO), has the X factor. Then there's watch and accessory retailer Fossil (FOSL), a stock that's up over 140% since Cramer first got behind the stock at just $44 a share. Fossil delivered a dazzling quarter with earnings up 62%, a 20-cent-a-share beat. Shares of Fossil rallied 12 points in a single day as analysts had to do a wholesale revision on their expectations. Cramer said Fossil clearly has the X factor, with robust growth all over the globe in not only watches, but also its jewelry and leather products as well. Fossil is cool, said Cramer, and the world knows it even if Wall Street doesn't. Cramer said that other stocks, like Deckers Outdoor (DECK) and recently Dominos Pizza (DPZ), also have the X factor, which is why he still likes both of these names as well.