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TheStreet Open House

Jim Cramer on Citigroup (C) Settlement, Alcoa (AA) Earnings and Tesla (TSLA) Stock

Stocks in this article: CTSLAAA

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Tuesday is a "fulcrum" day, in which there is plenty of bad news but stocks, if they hold, demonstrate some resilience. 

Citigroup's  (C) settlement, for example, is more bad news that has led to more downgrades and number cuts for the banks. But if the banks hold up, then the largest component of the S&P 500 could be OK.

Cramer is keeping an eye on Tesla  (TSLA), which has been a representative of the high multiple group. Barclays just slammed the electric car maker and said the stock has peaked. 

Finally, Cramer will have Alcoa  (AA) CEO Klaus Kleinfeld on Mad Money on Tuesday after the aluminum manufacturer reports its first-quarter earnings once the market closes. Cramer is looking for solid performances in the company's truck building, turbines, automotive, residential and non-residential sections. But perhaps mots importantly, he needs to see the price of aluminum increase because that is what has caused the stock to rise to more than $12.50 from $8. 

Must Watch: Jim Cramer on Citigroup Settlement, Tesla Leasing and Alcoa Earnings

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates CITIGROUP INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CITIGROUP INC (C) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CITIGROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CITIGROUP INC increased its bottom line by earning $4.25 versus $2.46 in the prior year. This year, the market expects an improvement in earnings ($4.77 versus $4.25).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 105.3% when compared to the same quarter one year prior, rising from $1,196.00 million to $2,456.00 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.1%. Since the same quarter one year prior, revenues slightly dropped by 4.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • You can view the full analysis from the report here: C Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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