Cramer's 'Mad Money' Recap: 9 Stocks That Outperform Google
Then there's Fresh Market (TFM - Get Report), which has 130 locations. Cramer said this stock trades at 28 times earnings with a 20% growth rate, but he worries about the company's regional to national plans as it attempts to enter Whole Foods' and Trader Joe's home turf of the Northeast.
Natural Grocers (NGVC - Get Report), is a newcomer to the organic grocer scene, debuting last year and seeing 119% growth since its IPO. Cramer said this stock is simply too expensive trading at 58 times earnings. He was equally unimpressed with Sprouts Farmers Market (SFM - Get Report), another fresh IPO that's rallied 122% since its debut.
Cramer's Cookout, Part 2
Next up on "Cramer's Cookout" were the organic food stocks of Hain Celestial (HAIN - Get Report), Annie's (BNNY) and WhiteWave Foods (WWAV - Get Report). Cramer said all three companies produce great natural and organic food products, but that doesn't mean their stocks are just as tasty.
Cramer said that while WhiteWave focuses on soy and almond milk along with lines of dairy and non-dairy creamers, Hain and Annie's are more broad-line plays, with many products in multiple categories and more being added all the time. That means while WhiteWave is not seeing a lot of commodity pressures, Hain and Annie's are more susceptible to such pressures.Annie's reported an earnings miss of 2 cents a share but was able to reaffirm its year-to-date guidance. WhiteWave recently reported in-line earnings, as did Hain. But when it comes to these companies' stocks, Cramer noted that Annie's sells for 36 times earnings with a 22% growth rate, giving it a PEG ratio of 1.7, which is pricey by Cramer's standards. He said that both Hain, which has a PEG or 1.5, and WhiteWave, at 1.3, are far more favorable. With earnings rapidly approaching, Cramer said he'd only put on a small position now and wait for the release before buying more.
Lightning RoundIn the Lightning Round, Cramer was bullish on American Electric Power (AEP), Costco (COST) and Nokia (NOK). Cramer was bearish on Spartan Stores (SPTN), Sysco (SYY), AES Corp (AES), Select Comfort (SCSS) and Himax Technologies (HIMX).
Executive Decision: Tom PikeIn the "Executive Decision" segment, Cramer sat down with Tom Pike, CEO of Quintiles Transnational (Q - Get Report), the newly minted clinical trial outsourcing company that just beat earnings expectations by 4 cents a share on its first quarter as a publicly traded company. Pike said Quintiles performs best when it receives full-service contracts from its customers, which allows the company to both design and execute clinical trials as well as provide observations and studies after the trial has been completed. He said the full-service approach offers customers a faster, more efficient approval path for the drugs their working on. Quintiles has a very experienced team that works directly with the U.S. Food and Drug Administration, Pike explained, which makes its services extremely valuable.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts