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NEW YORK (TheStreet) -- The turn is Europe is now undeniable, Jim Cramer announced to his "Mad Money" viewers Monday. He said the turn in Europe will have a huge impact on U.S. stocks. However, so far absolutely no one is talking about it.
How did Cramer come to be so confident Europe's bottom has finally arrived? Because companies told him so in their conference calls. That was certainly the case with General Electric (GE), a stock Cramer owns for his charitable trust, Action Alerts PLUS. After years of being hit with European woes, GE now says its seeing signs of life across the continent.
Management at Honeywell (HON) noted that while it's not ready to declare victory in Europe, things are indeed getting better. Meanwhile, PPG (PPG) said on its conference call that it, too, is seeing stability in Europe.Cramer said this trend was confirmed by Ingersoll-Rand (IR) and Johnson Controls (JCI), along with non-industrial names like VF Corp (VFC) and even Manpower (MAN), which saw hiring pick up in France, Italy and even hard-hit Spain. Cramer said the time is now to being investing in any of these names, but he prefers the Vanguard FTSE Europe ETF (VGK), which offers exposure to them all.
Catching the White WaveThere's no denying that the organic and natural foods space has been on fire this year, with stocks like Hain Celestial (HAIN) and Annie's (BNNY) up 36% and 33% for the year, respectively. Even a newcomer to the space such as Fairway (FWM) has rocketed 115% since its IPO early this year. But now all organic food stocks are treated equally, said Cramer. That's certainly the case with White Wave Foods (WWAV), the recent Dean Foods (DF) spinoff that makes primarily premium dairy products like soy milk and coffee creamers. While Hain Celestial trades at 25 times earnings with a 16.7% growth rate and Annie's trades at 26 times earnings with a 22.5% growth rate, White Wave has only managed to garner a 22.4 multiple despite its growth rate of 20%. That's far too low, said Cramer, given what this company can do. Investors were not thrilled with the company's last earnings reported on May 9. While the company beat by 1 cent a share, revenue were light and analysts were able to nitpick among the company's other metrics. But Cramer said White Wave is a leader in its category and its category is just getting started.
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