NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Hillshire Brands (HSH) was trading at $32 a share three weeks ago and is now up to $58 a share as Pilgrim's Pride (PPC - Get Report) and Tyson Foods (TSN - Get Report) continue a bidding war to acquire the Jimmy Dean sausage maker and increase their presence on store shelves in supermarkets.
Cramer says Pilgrim's Pride and Tyson are tucked away in the frozen chicken section. It's time for them to move over into other aisles, and Hillshire is the toehold that can help them do that. But Cramer does not recommend investors sell Hillshire yet because he thinks it can still go higher.
"We rate HILLSHIRE BRANDS CO (HSH) 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 deteriorating net income, generally higher debt management risk and poor profit margins."
Cramer is also looking at Bob Evans Farms (BOBE - Get Report), which has both a restaurant division and a sausage division. He believes the latter could be a lot more valuable than previously thought.TheStreet Ratings team rates Bob Evans Farms as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BOB EVANS FARMS (BOBE) 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 compelling growth in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Finally, Cramer reminds investors not to forget Kraft (KRFT) and its Oscar Mayer division, which could also be worth much more than investors thought.