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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Cramer's 'Mad Money' Recap: Next Week's Game Plan

Cramer noted that only 24% of all hospitals outsource their laundry and linen services, and long-term care facilities outsource even less. This leaves a huge opportunity for growth for Health Care Services. Indeed, the company grew earnings at a 16% clip during its last quarter.

But even more exciting is HCS's dining services, a segment that delivered 50% growth in the quarter.

So why is such a rock-solid business a speculative stock? In a word, valuation. The company currently trades at 26.6 times earnings and has only an 18% growth rate. Cramer said that's higher than he would like, but feels in this case, the company is delivering on its promises and deserves its multiple.

Executive Decision

In the "Executive Decision" segment, Cramer welcomed Tim Conver, chairman and CEO of AeroVironment (AVAV), makers of unmanned drone aircraft and electric-vehicle charging stations.

Shares of AeroVironment are down 20% of the year on uncertainty about next year's defense budget. AeroVironment currently has 75% market share in the military's unmanned drone arsenal.

Conver said the military budget picture is a murky one, but added that the vast majority of his company's products are small, inexpensive drones that cost far less than the alternatives and save lives. He said these products are easy to support politically and hard to deny. Conver said AeroVironment is in a "good position" even with the political headwinds.

Conver also detailed some of his company's newer innovations, such as the switchblade missile. He said soldiers from the field have reported being pinned down by snipers or mortars and having to wait hours for air support to arrive. However, AeroVironment's new winged drones can fit into a backpack and be quickly launched to identify targets.

Turning to the company's other business, electric-vehicle charging stations, Conver said AeroVironment is meeting the needs of auto companies, consumers and public projects by offering a complete array of hardware, software, installation and support services. He said the business is growing and the government's free promotions will end eventually, adding to his company's bottom line.

Cramer said he's not worried about the military budget, as AeroVironment is on the cutting edge of what our troops need to succeed.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

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