Competition is heating up on Wall Street, and if you can predict the winners, you can make some money, said Jim Cramer on his
"RealMoney" radio show Wednesday.
H-P reported "a monster good quarter" that included a 50% increase in earnings. This shows that cost-cutting is working and that the company is on the right track, Cramer said.
But Dell recently warned investors that its financial performance would fall far short of expectations. Wall Street likes one company more, even though they both basically have the same product, Cramer said. And he attributes this disconnect to management.
H-P has been able to figure out how to make more money than Dell, thanks to CEO Mark Hurd, Cramer said. Hurd turned around business at
and was brought in to clean up after Carly Fiorina's disastrous tenure at H-P.
He said that investors who own Dell could let it go up a little and then take the profits and run.
In the battle between
Royal Caribbean Cruises
, Cramer said that Carnival just reported a miserable quarter and lowered its expected earnings guidance.
The company itself creates its earnings estimates, so it's bad news if the company later says it can't meet its own forecast, Cramer said.
But Royal Caribbean has said that it should no longer trade with Carnival because its business in the Caribbean is doing so well.
Maybe Royal Caribbean is better than we had assumed and Carnival is worse than we had assumed, Cramer said.
He said that there is also a battle among banks as they try to get our money, which is based on making banking itself a better experience.
Some banks are retrofitting to make themselves look like coffeehouses and offering wireless Internet and movies on plasma screens. Banks were once cold and impersonal, but ATMs made it possible to avoid the banking experience.
Banks noticed that deposits were slowing and that they had to get customers back into their branches, he said, adding that
has a common area for parents and kids and that
now has Internet cafes and coffee bars.
installed glass dividers to create an open feel, and
chief executive is working hard to turn the company around, Cramer said.
He said that the bank that pioneered all of this change is
, a stock that he owns for his charitable trust
Action Alerts PLUS.
His three top banking bets are Citibank, J.P. Morgan and Commerce Bancorp.
Not only did Cramer encourage listeners to buy H-P, he also was extremely bullish on
Abercrombie & Fitch
. He said that the company reported a "monster quarter," but is selling at only 11 times earnings.
It's the cheapest retailer out there now, he said, and the fact that it's up on a day when the
is sinking shows that it has a lot of strength.
To see the most recent edition of The RealMoney Radio Recap in its entirety, please click here. This recap is published every day around 3 p.m. ET.
At the time of publication, Cramer was long Commerce Bancorp.
James J. 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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