Now that the company has slashed its guidance to where it can beat it, the stock is more attractive, trading at 13.5 times earnings with a 12% growth rate. Cramer said the company remains speculative, but it just might have what it takes for successful turnaround.
Lowe's vs. Home Depot
A rising tide may lift all boats, but that's no reason to sacrifice a best-of-breed company for a second-rate one. That was Cramer's conclusion after diving into the earrings from both
(LOW - Get Report)
(HD - Get Report)
, a stock he owns for his charitable trust,
Action Alerts PLUS
On the surface, it may seem that both companies did well when they last reported. Lowe's delivered a three-cent-a-share earnings beat on higher revenue, but guidance fell below forecasts, sending share lower by 4.8%. Home Depot also delivered a three-cent beat on stronger revenue and also gave guidance below expectations.
But Cramer said the matrix that matters for these home-improvement giants is same-store sales, where Lowe's came in at just 1.9% growth while Home Depot rocked the house with a 7% gain. Cramer said that's the widest split in growth in over 13 years for these companies. Home Depot also offered investors its fourth dividend boost in recent years and a stock buyback that was larger than that of Lowe's.
When you boil down the earnings, Home Depot has better stores in better locations and a better management team that knows how to execute, said Cramer.
In the Lightning Round, Cramer was bullish on
Lions Gate Entertainment
Enterprise Products Partners
iShares MSCI Mexico
Cramer was bearish on
Penn West Energy Trust
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to
to see if investors' portfolios have what it takes for today's markets.
The first portfolio included:
American International Group
Cramer said JPMorgan can coexist with AIG and he blessed this portfolio as diversified.
The second portfolio's top holdings included:
SPDR Gold Shares
Cramer called two-of-a-kind with Verizon and AT&T and said that he'd swap out AT&T for a drug stock like
The third portfolio had:
as its top five stocks.
For this portfolio, Cramer advised selling Excel and once again adding a stock like Bristol Myers.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said he's tired of hearing about government sequestration fears because the bears have yet to come up with any stock that's actually being hurt by our national budget woes.
He said the closest the bears have come are the defense stocks, but those names are still hitting new highs.
Cramer said until some creative financier develops a "federal sequestration misery index" to track those stocks that are actually being affected, the markets will likely still not care.
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-- Written by Scott Rutt in Washington, D.C.
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