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TheStreet Open House

Jim Cramer Talks Starbucks (SBUX), Dunkin' Donuts, (DNKN), Union Pacific (UNP) and CSX

Stocks in this article: SBUXDNKNDSXUNP

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says the new EPA regulations will not affect CSX  (CSX) because the EPA is giving railroad companies much longer than previously thought to comply with the regulations and is also giving the governors, who are generally pro-coal, the chance to play a role.

Cramer says he would not worry about CSX in this regard, but he does like Union Pacific  (UNP) more because it is a better-run company.

Must Watch: Jim Cramer Answers Twitter Questions on Starbucks, Dunkin' Donuts and CSX

TheStreet Ratings team agrees, as it rates CSX as a "buy" with a ratings score of A-, but Union Pacific as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation on CSX: 

"We rate CSX CORP (CSX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

TheStreet Ratings Team says the following about their recommendation on UNP:

"We rate UNION PACIFIC CORP (UNP) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Starbucks  (SBUX) has been in a tight range since its last quarter, but Cramer thinks CEO Howard Schultz will come out "with guns blazing" to announce that the business is strong.

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

"We rate STARBUCKS CORP (SBUX) a BUY. This is driven by multiple strengths, 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 revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."

Dunkin' Donuts  (DNKN) has fallen a bit in the last month, but Cramer calls it a very good retailer and notes many restaurant chains are stuck in a range. He says investors in these stocks must be patient but admits he is not crazy about them because he doesn't see the consumer "on fire."

TheStreet Ratings team rates Dunkin' Donuts as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: 

"We rate DUNKIN' BRANDS GROUP INC (DNKN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and unimpressive growth in net income."

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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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