Jim Cramer's Top Takeaways: FireEye, PPG, Whole Foods Market

Cramer believes in FireEye, likes PPG's consistency but he's not ready to buy what Whole Foods is selling.
By Scott Rutt ,

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Did you miss last night's "Mad Money" on CNBC? If so, here are Jim Cramer's top takeaways for today's trading.

FEYE data by YCharts

FireEye (FEYE) - Get Report : In an exclusive interview, Cramer spoke with David DeWalt, chairman and CEO of FireEye, the cyber security company that saw its shares crushed by 22.8% Thursday after reporting weaker-than-expected results. Shares of FireEye are down more than 44% over the past six months.

DeWalt said he's proud of what FireEye has been able to achieve over the past three years, growing from a product into a platform and towards revenue approaching $1 billion. The cyber security market moves in cycles, he continued, and many companies responded to high-profile attacks with lots of spending, and some of that spending is now tapering off.

FireEye remains committed to the long term, DeWalt said. While the company could do better in places like Europe, it has a healthy balance sheet and is ready to adapt to the changing threat landscape.

Cramer said if investors believe in cyber security, they need to take a hard look at FireEye at these low levels.

PPG data by YCharts

PPG Industries (PPG) - Get Report : In his second exclusive interview, Cramer spoke with Michael McGarry, the new president and CEO of PPG Industries, the industrial coatings maker that's seen its shares slump 9% over the past month despite strong earnings.

McGarry, a 34-year veteran of PPG, said he sees acceleration of the auto business in Europe, with Germany and the UK remaining strong. Meanwhile in China, McGarry said there was an acceleration in September and PPG remains strong all across China, from small cars to big ones.

Back in the U.S., McGarry noted the construction recovery continues in earnest, while aerospace, where PPG makes glass, paint and sealants, is also a great business for the company.

When asked about the use of cash, McGarry said acquisitions are always at the top of the company's list, but PPG remains committed to its dividend and stock buybacks.

Cramer said when it comes to industrials, investors should be looking for consistency. That's exactly what PPG provides.

WFM data by YCharts

Whole Foods Market (WFM) : In an industry that lives and dies by the same store-sales metric, what should investors make of Whole Foods, which continues to see its sales sliding?

Cramer said he was not impressed by Whole Foods' weak results, including not only declining sales but rising costs that are crimping gross margins. He also questioned the company's decision to buy back $1 billion worth of its own shares.

Whole Foods admitted it needs to spend more on new technology to speed up long lines and revamp its loyalty program. The company said it is spending more on its new smaller-store format. Management even said on the conference call it needs to "get back to basics," causing an open rebellion from the analysts in attendance.

Can Whole Foods succeed in reinventing itself? Cramer thinks it can, but why would it spend $1 billion on buying back shares rather than fixing problems faster? At some price the negatives will be priced in, he concluded, but we're not there yet.

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At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.

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