NEW YORK (TheStreet) -- After yesterday's market close, software company Red Hat (RHT) - Get Reportposted a fiscal 2016 third quarter earnings and revenue beat, while home builder Lennar (LEN) reported 2015 fourth quarter earnings ahead of estimates this morning.
Red Hat has been a "dramatic gainer" largely because it is a cloud-based subscription company similar to Adobe (ADBE), TheStreet's Jim Cramer said on CNBC's Squawk on the Street this morning.
The company was also helped by its partnership with Microsoft (MSFT), which was upgraded to "neutral" from "sell" at Goldman Sachs this morning, Cramer pointed out.
As for Lennar, its double-digit percentage gain in orders this quarter was "great," and the company is telling a "very, very positive story," Cramer stated. He added that Lennar is "the best of the home builders."
Lennar CEO Stuart Miller has assured investors that the company will be fine following the Federal Reserve's decision this week to hike interest rates for the first time in nearly a decade, Cramer noted.
Cramer did caution that Lennar tends to be conservative on its conference call, which can reverse the price of shares. The stock was up in pre-market trading and is now down by 3%.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate RED HAT INC as a Buy with a ratings score of B. This is driven by some important positives, 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 revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: RHT