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It's time to take a look at the play on beautiful smiles, Jim Cramer told viewers of his "Mad Money" TV show Tuesday.
Cramer focused on
whose proprietary system for straightening teeth, Invisalign, calls for people to wear a series of plastic aligners for nine to 18 months.
Within the dental business, Invisalign "is heralded as the best of the best," Cramer said, adding that the stock has been on an "incredible" run. For the last two quarters, Align has blown away its numbers. When it reports again in the next few weeks, Cramer expects it to beat earnings for a third time in a row. Align, he said, knows how to beat estimates and then raise them.
Although Align stock is expensive, Cramer told viewers to keep in mind that the Street has "consistently underestimated" it. On Aug. 29, Jeffries downgraded Align because of new competition, but Cramer predicts "the shorts will not need braces, but implants or dentures because they're going to get kicked in the teeth with this one."
The stock has an estimated 34% growth for next year, and these estimates are based on numbers Cramer believes are too low. "When the economy is slowing down, this is the kind of growth people should want.
"Vanity stocks have made us a huge amount of money, and I don't expect it to get any better than a play on straight teeth," Cramer said.
LKQ Another High-Flier
On another sour market day, Cramer picked a high-flying stock, just as he did on Monday when he chose
He said investors should consider buying
( LKQX), the number-one supplier of recycled auto parts. LKQ completed an acquisition of Keystone Automotive Industries on Monday.
Cramer expects analysts to raise future earnings estimates after the newly combined company produces earnings that are much higher than current estimates.
In addition, LKQ just had a secondary offering and the stock went higher, he said. "We want to find stocks that lots of people want to buy, and that's LKQ," he said. "That's how we found
Also, as insurance companies increasingly look for cheaper ways to fix cars, LKQ should get more business, Cramer said. For this stock, he sees a risk of four points to the downside and a reward of 15 points to the upside.
"The price is right for LKQ," Cramer said. "It could trade at $50." However, he warned market players not to pay much more than today's closing price of $34.60.
A Trendy Stock
Investors should always be looking for new trends in the market, Cramer said. He pointed out Mark Penn's
Microtrends: The Small Forces Behind Tomorrow's Big Changes
, which depicts an underlying trend behind an issue such as hearing loss.
After reading Penn's book, Cramer said he did some homework and came up with
( SNCI), a manufacturer of small, unobtrusive hearing aides with great sound quality.
Soon legislation should pass for Medicare patients to go to ordiologists without referrals, Cramer said. But even without this, he expects the stock to go to $13. It closed at $9.76 at the close of trading on Tuesday.
The international market for hearing aides is $2.5 billion, Cramer said. The downside is competitors could take away some market share. Plus, the product is risky because hearing aids are not covered by insurance. Despite those concerns, there is a bull market in helping people with hearing loss. The stock should go up, he said.
Since Sonic Innovations is a small company, he urged people to be careful. Use limit orders and be patient, Cramer advised. If market players can't buy the stock at its current price, "take a pass."
A Non-Invasive Approach to Measure Blood Oxygen Levels
CEO Joe Kiani joined Cramer on the show, explaining that pulse oximetry is a noninvasive way to measure blood-oxygen saturation.
"Oxygen is vital to the body," the chief executive said. Too little or too much oxygen in the blood can cause damage.
Research has shown that Masimo's pulse oximeter is the best, he continued. The industry is big enough, but analysts, Kiani said, estimate all of Masimo's products together have a $2 to $3 billion market potential.
This is the type of stock that is not affected by a slowing economy, Cramer said, adding Masimo is "for anyone who needs a medical healthcare company that is small cap."
Cramer was bullish on
Burlington Northern Santa Fe
Research In Motion
Cramer was bearish on
American Oriental Bioengineering
( AOB) and
During the "Sudden Death" round, Cramer was bullish on
He was bearish on
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Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for
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