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 - Get Report), 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 - Get Report) 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