Cramer's Take on the Top 10 Searched Stocks

Fannie, Freddie and Cummins were among the most searched stocks on <I>TheStreet.com</I> Tuesday. Here's what Cramer had to say about them recently.
By Stockpickr Staff ,

Updated from 9:21 a.m. EDT

Could the headlines be any worse?

  • U.S. Home Foreclosure Rate Soars 112 Percent
  • Home Prices Plunge at Record Rate of 12.7 Percent
  • Consumer Confidence Drops to Lowest Point in 5 Years
  • Oil Prices Near All-Time Highs

All of this ahead of the

Fed

meeting kept investors in check for most of Tuesday. At the same time, you have to wonder what it will take for the market to sell off sharply. It seems to have somewhat absorbed the above headlines, assuming that maybe the worst is over. Some earnings have been better than expected. And it's an election year, which often pushes markets higher.

With all of this to consider, we thought it made sense to take a look at Tuesday's Top 10 Most Searched Stocks on

TheStreet.com

and find out what

Jim Cramer's take has recently been on them

.

These stocks could be in the news for a number of reasons. Some require immediate attention while others may not. But it never hurts to hear what Cramer (or any of the other professional investors on the site) has to say about them. The key is to gather as much information as you can in order to make the most informed investment decisions you can.

Despite

MasterCard

(MA) - Get Report

,

Countrywide

(CFC)

and

BP

(BP) - Get Report

headlining a lot of the news Tuesday because of their earnings, we'll kick it off today with

Fannie Mae

(FNM)

and

Freddie Mac

(FRE)

.

In a

post on his RealMoney blog

on Monday, Cramer wrote:

"Fannie and Freddie with their recent rallies are either signaling that someone is so short and getting squeezed -- makes sense, these could be huge shorts -- or that house price depreciation has hit bottom. ... I point out the latter because if house price depreciation ends, these stocks could be triples. More than that. They have all of this stuff valued as if it is worthless, and they have all these new fees that they are getting because they are the only game in town and houses have fallen so far in price that they are conforming! Sorry, but I don't believe that house price depreciation is over. Maybe I have read too many conference calls, like the Pulte (PHM) - Get Report call yesterday. ... ... But don't buy FNM and FRE, which we know need more capital. I do believe that by this time next year, housing will have bottomed. But it has to fall 10%-15% just to catch up with the declines in new-home prices. When that happens, I'll be a believer."

Next on the list is

Cummins

(CMI) - Get Report

.

On

Friday's "Mad Money" show

, Cramer said, "Even the least green-looking companies can make you money" as he recommended Cummins as his next "camouflaged" green company.

Cramer believes the engine company is the clear choice in the sector as it is proactively responding to ever-increasing emissions standards set by governments worldwide with more fuel-efficient engines.

"Cummins," Cramer says, "is eating

Caterpillar's

(CAT) - Get Report

lunch." The company has increased market share by 18% to its current 43% share. "This is the biggest share take I've seen since starting this show."

Given Cummins' forward price-to-earnings ratio of 10 and 20% long-term growth rate, the stock could double as that would put it more in line with historical P/E rates.

The company reported quarterly results this morning, and Cramer last week suggested "pulling the trigger" ahead of the report.

For the more opinions on Tuesday's top searched stocks, including

EMC

(EMC)

and

Hewlett-Packard

(HPQ) - Get Report

,check out

Cramer's Take on Top 10 Most-Searched Stocks From April 29

.

(Editor's note: At the time of original publication of his posts and shows, Cramer owned BP and EMC for his Action Alerts PLUS charitable trust. And General Electric owns CNBC, for which Cramer is a featured commentator.)

Stockpickr is a wholly owned subsidiary of TheStreet.com.

Loading ...