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
TheStreet Open House

Cramer's 'Mad Money' Recap: Maximum Gains From Minimum Competition

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- Before you buy a stock, stop and think about the company's competition, Jim Cramer warned "Mad Money" viewers Tuesday. Cramer said that in today's market competition matters, and those in cut-throat businesses are getting pummeled.

Cramer's theory was clearly evident in Tuesday's trading with companies such as United Technologies (UTX) leading the charge higher. Not only is the company in the red-hot aerospace market, but it's also able to raise its prices and enjoy bigger margins thanks to extremely limited competition.

On the flip side, there's Travelers (TRV), the insurer that's getting hit on all sides as it is forced to compete for business largely on price alone. Shares of Travelers did not fare well in today's trading, noted Cramer.

Both Honeywell (HON) and General Electric (GE) did well in the quarter, as did rails CSX (CSX) and Union Pacific (UNP). Cramer also liked banks such as JPMorgan Chase (JPM) and Wells Fargo (WFC), two stocks he owns for his charitable trust, Action Alerts PLUS .

Meanwhile, companies with lots of competition, from Coca-Cola (KO) to Microsoft (MSFT), struggled. Even the venerable Google (GOOG) failed to impress investors this quarter.

Cramer once again gave the nod to mortgage insurers like Radian Group (RDN) and Genworth Financial (GNW) as they, too, have little in the way of competition.

Should You Buy Sprint?

With all of the mergers and buyouts now complete, is the new Sprint (S) worth owning? The analysts are clearly undecided because the company has received various upgrades and downgrades over the past few weeks. Cramer dove into Sprint's fundamentals to discover the truth.

Cramer said Sprint is a completely new company now that its Clearwire and SoftBank deals are complete. The old Sprint was a turnaround story, he said, but the new Sprint is a growth story. CEO Dan Hesse is still in charge, and that's a good thing -- but the new company now has more 4G LTE spectrum than all of its competitors combined.

It will likely take Sprint up to a year to fully roll out its LTE network, which is why just about everyone expects the current quarter's results to be a disaster, noted Cramer.

1 of 3

Select the service that is right for you!

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 17,156.85 +24.88 0.15%
S&P 500 2,001.57 +2.59 0.13%
NASDAQ 4,562.1890 +9.43 0.21%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

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