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NEW YORK (
) -- The one event thing that could've derailed the market rally was the
, Jim Cramer told his
viewers. However, the 321,000 jobs that were created in November were much better than expected, which basically paves the way for a year-end rally.
So with just a few weeks left in 2014, Cramer is looking ahead to Monday, when Agios Pharmaceuticals (AGIO) - Get Agios Pharmaceuticals, Inc. Report and Amgen (AMGN) - Get Amgen Inc. Report will present findings at the American Society of Hematology conference.
While he likes both stocks and expects to hear good things at the conference, investors should wait for a pullback before getting long Agios, he said. He also expects positive commentary from Dover’s (DOV) - Get Dover Corporation Report analyst meeting and thinks the recent selloff is a buying opportunity.
Investors can own shares of Restoration Hardware (RH) - Get RH (Restoration Hardware) Report ahead of its earnings release on Wednesday and should look for a pullback in Costco Wholesale (COST) - Get Costco Wholesale Corporation Report if its earnings disappoint the Street. Cramer added that Land’s End (LE) - Get Lands' End, Inc. Report , which also reports earnings, is a “keeper.”
“Thursday is the most exciting day of this week,” Cramer said, because it features United Technologies’undefined investor day conference. Cramer hopes the company, a holding in his charitable trust Action Alerts PLUS, explains why the previous CEO left the company.
If shares of Cardinal Health (CAH) - Get Cardinal Health, Inc. Report pull back between now and Friday, it’s a buying opportunity, he said. The company is scheduled to hold its “Dublin Day” conference for investors and analysts.
Winning With AbbVie
Remember in mid-October when shares of
sold off after announcing it would no longer pursue its acquisition of
? Cramer does. At the time, it seemed like a terrible move but it “may have turned out to be the best that ever happened to AbbVie,” he said.
It turns out the management of this Action Alerts PLUS portfolio stock has more than one way to create value for its shareholders. While the inversion would have helped with AbbVie’s tax rate at the time, the Treasury Department changed the rules that made it less attractive for it to do the deal. Instead, the company boosted its dividend by 17% and announced a $5 billion share repurchase plan.
The company has a promising hepatitis C treatment and if it can garner just 20% of that market, it could result in $4 billion worth of sales, Cramer said. Of course, the company would be competing with Gilead Sciences (GILD) - Get Gilead Sciences, Inc. (GILD) Report , another stock he said investors should be long. AbbVie’s strong pipeline could pave the way for several multi-billion dollar treatments in the not-too-distant future, Cramer said.
The bottom line: “AbbVie is an incredibly shareholder-friendly company that is a heck of a lot more attractive than many of us had thought,” he explained. Its low valuation and ability to make accretive acquisitions make this stock a winner.
Ulta's Lows and Highs
Ulta Salon Cosmetics & Fragrances
, rose Friday after the company
. That got Cramer thinking.
The stock was once a market darling, running from less than $50 per share in 2011 all the way to $130 last November. At that point CEO Mary Dillon, who was new to the position at the time, reassessed the company’s growth outlook to more reasonable levels.
Investors didn’t take kindly to the move and the stock fell from $130 to $80 in just six weeks, Cramer pointed out. But it turned out cutting the growth outlook was the best move.
One year later, Dillon has the company back on track for success. This time the company isn’t aligned for rapid growth and short-term success, it’s set up for long-term profitability based on reasonable and sustainable growth, he said.
The company’s 9% same-store sales growth was better than the 7% growth expected in the most recent quarter. Dillion did what had to be done because she took over a “nightmare that was waiting to happen,” Cramer explained.
The bottom line: The stock is still somewhat expensive," but is much cheaper than last year, Cramer said. The rally above $130 can continue, “based on sustainable and prudent moves that have only just begun to generate spectacular results,” he said.
Executive Decision: Jon Ayers
In his “Executive Decision” segment, Cramer sat down with Jon Ayers, chairman, president and CEO of
. The company is a major player in the animal health care space, which features point-of-care veterinarian diagnostic products, instruments and analyzers, Cramer explained.
"We posted 5% organic growth in 2009," Ayers said, the worst result in over a decade. But that’s also when the entire economy was in disarray, showing that Idexx Labs can still grow regardless of the economic conditions.
Pet owners love their animals and are willing to spend money on them to make sure they’re healthy and safe, he noted. They also tend to put a high amount of trust in vets, who often recommend several tests for the animal to ensure it's in good health.
The boost in testing increases sales for Idexx, he said. But everyone wins -- the veterinary clinic does more business and the pet is generally healthier as a result, which pleases the owner.
The company recently moved its salesforce in-house, which has resulted in its customers’ sales growing 12%, as opposed to 3%. Because of this, the company recently boosted its sales team by 70%, which should help Idexx meet its projected 13% to 14% organic growth expectations for 2015, Ayers said.
This is a great stock with consistent growth, Cramer said. If the company can top estimates throughout 2015, the stock will continue to climb.
In the Lightning Round, Cramer was bullish on RF Micro Devices (RFMD) , Schlumberger (SLB) - Get Schlumberger NV Report , Kinder Morgan (KMI) - Get Kinder Morgan Inc (KMI) Report , Xerox (XRX) - Get Xerox Holdings Corporation (XRX) Report , Plains All American Pipeline (PAA) - Get Plains All American Pipeline, L.P. Report and Salesforce.com (CRM) - Get salesforce.com, inc. Report .
No Huddle Offense
In his “No Huddle Offense” segment, Cramer took another look at oil prices. After the better-than-expected labor report was released, oil prices should have closed higher on the day, not lower.
As a result, “you can bet that we haven’t seen the last of this nasty decline,” he said of oil. The U.S. isn’t like Saudi Arabia where it can adjust its oil production overnight. There are budgets and contracts in place, making it harder to alter production. So the current oversupply situation is likely to remain the same, putting more pressure on oil prices.
Cramer told his viewers that three things need to happen before the energy sector becomes a buy. First, there needs to be a large number of budget cuts and analyst downgrades.
Second, there needs to a few bankruptcies and defaults from the oil producers that outspent their cash flow, Cramer said. Third, we need to see some of the financially flexible companies with deep balance sheets take advantage of the recent stock price selloff and acquire some of its competition.
While many companies will make it through this tough time, there’s still more pain to come, he concluded.
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-- Written by Scott Rutt in Washington, D.C.
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At the time of publication, Cramer's Action Alerts PLUS had a position in ABBV, KMI and UTX.