What does that mean for investors? Cramer said it means Quanta Services (PWR), the leader in building, maintaining and repairing electrical infrastructure.
In addition to its electrical business, Quanta also helps build and maintain oil and natural gas pipelines and is a key provider to companies like Enbridge (ENB) and Kinder Morgan Energy Partners (KMP), all of which need more pipelines as they expand into our nation's oil shale.
Quanta also has a big business in Canada, noted Cramer, a country that plans to spend over $100 billion over the next 20 years to rebuild its aging infrastructures.
Cramer noted that shares of Quanta are trading just off their 52-week highs but are still a full $10 a share short of where they were before the great recession.He said the company trades at 15.8 times earnings with a 17.7% growth rate, despite having delivers three beat-and-raise quarters, including its most recent 11-cent-a-share earnings beat on a 34% rise in revenue. Quanta currently has a $4 billion backlog of business.
How to Play Real EstateThe U.S. housing market is back, Cramer told viewers, but is the way to play the move with real estate Web sites including Zillow (Z), Trulia (TRLA) or Realogy (RLGY)? Cramer said that all three of these companies were hot IPOs that popped on their first day of trading, but only one is currently worth investing in. Both Zillow and Trulia are real estate Web sites, said Cramer, ones that rely on online advertising for their revenues. Realogy, however, is an old-line real estate broker, running under the Coldwell Banker name among others. This means while just about anyone can come in and compete with Zillow or Trulia, Realogy stands alone as a solid, proven company. Cramer said the fear with both Zillow and Trulia are that their growth is unsustainable. With shares trading at 48 times earnings and 103 times earnings respectively, both companies cannot afford to have that happen. As the housing recovery continues, Realogy will make money two ways, both from higher home values -- think commissions -- and by taking a larger percentage of the real estate pie. The company already has its hands in nearly a quarter of all residential real estate transactions in our country.
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