NEW YORK (TheStreet) -- The Dow transportation stocks, particularly airline stocks, are on fire, Jim Cramer said Thursday on CNBC's "Cramer's Mad Dash" segment.
TheStreet's Cramer, co-manager of the Action Alerts PLUS portfolio, focused on American Airlines (AAL), which beat on earnings expectations and impressed investors in its first full quarter report since its merger with United Airlines.
Cramer said he likes the company's valuation of $10 billion in cash and a $17 billion market cap, along with the prospects of a share buyback program.
He added that Delta Air Lines (DAL) also reported a relatively healthy quarter, forcing him to question how well the airlines could have done in a year without such extreme winter weather.
Cramer suggested that AAL could have $6 in annual earnings per share two years from now and could trade at $60 per share. It would give the airline company a reasonable valuation of 10 times earnings, he concluded.
-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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