This Day On The Street
Continue to site right-arrow
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

Jim Cramer's 'Mad Money' Recap: This Market's Got Legs

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

NEW YORK (TheStreet) -- Stop the presses! Value actually matters, Jim Cramer proclaimed to his Mad Money viewers Tuesday. Better still, the market's value move may actually have some legs.

Cramer called out Caterpillar (CAT) as a shining example of the market's move towards valuation. Caterpillar has been missing estimates for ages, Cramer explained, but it now trades at just 14 times vastly reduced estimates, far less than the S&P 500, which trades at 17.2 times earnings.

Can things actually go right for Caterpillar? United Rentals (URI) said business is brisk and the Federal Reserve told us things are improving. Coal seems to be bottoming and the trucking industry continues to be on fire. Add all those things together and investors are smart to take a chance on Cat, Cramer concluded.

The same applies for Johnson & Johnson (JNJ), a stock Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said J&J is a strong drug company with a great balance sheet and a new CEO willing to shake things up, yet it trades at a big discount to its peers.

Still other examples of value stocks include IBM (IBM), Microsoft (MSFT), Schlumberger (SLB) and Celgene (CELG), another Action Alerts PLUS holding.

Executive Decision: Manny Chirico

For his "Executive Decision" segment, Cramer sat down with Manny Chirico, chairman and CEO of apparel maker PVH Corp (PVH - Get Report), a stock that's down 14% so far in 2014 thanks, in part, to a brutal winter in much of the country.

Chirico said many of the initiatives put in place last year will begin to bear fruit in the second half of 2014. Already, the company is starting to see better sales of Calvin Klein jeans in both Europe and North America, he said. Meanwhile, the company's Asian business continues to expand.

Chirico said PVH is still investing in its Warnaco acquisition from last year, but the light at the end of the tunnel is coming. He said the tough winter here in the U.S. continued to slow sales in both February and March, but he's optimistic for a bounce back once the weather finally warms up.

When asked about J.C. Penney (JCP), a big PVH customer, Chirico said things continue to improve at Penney.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
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!
PVH $107.40 0.79%
UNH $117.45 -0.71%
AAPL $124.25 -0.14%
FB $81.66 -0.67%
GOOG $542.56 -0.99%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs