NEW YORK ( TheStreet) -- "When the smoke clears in Europe, it will be the big themes that win," Jim Cramer told his "Mad Money" TV show viewers Wednesday, as he highlighted what's moving stocks this earnings season. 1. The collapse in commodity prices. Cramer said that companies like Panera Bread ( PNRA) and VF Corp ( VFC) have proven that companies that have pushed through price hikes to customers will reap huge rewards once commodities start falling. Look for Phillips-Van Heusen ( PVH) and Polo-Ralph Lauren ( RL) to be next. 2. Differentiation wins. Cramer said companies like 3M ( MMM), Ingersoll-Rand ( IR) and Illinois Tool Works ( ITW) have become proxies for global growth and are getting hammered, while others, lik2 Caterpillar ( CAT), Eaton ( ETN) and Parker Hannifin ( PH) are bucking this trend with differentiated products. 3. Innovation wins. Cramer said Google ( GOOG) and Intel ( INTC) have proven that new products and innovation will send your shares higher. 4. Know your customer. Cramer said that companies like Apple ( AAPL), a stock which he owns for his charitable trust,
Rising DemandIn the "Executive Decision" segment, Cramer spoke with Jim Flaws, CFO of Corning ( GLW), whose stock just delivered a six-cent-a-share earnings beat on a 29% rise in revenues along with raised guidance. Corning also announced a 50% increase in its dividend and a stock buyback program. Flaws said that inventories have finally bottomed in the company's display business and he's seeing strong retail demand for televisions in every region of the world. Corning's fiber optic business has also been building and is now the strongest its been in 10 years, he said. Flaws also said that there's strong growth in China, which is now the largest market for televisions in the world. When asked about the dividend and buyback program, Flaws said that Corning is a constant cash flow generator and the dividend is something it has planned for awhile. The buyback, he said, is the company's way of saying that shares are undervalued. He has also personally made a similar commitment, buying shares on the open market. Turning to new products, he said that its gorilla glass product will triple this year, while at its North Carolina fiber optic plant, Corning is pioneering new technology and is hiring new workers. Cramer said he's never been more confident in recommending Corning than he is right now.
Customer Loyalty AboundsIn his second "Executive Decision" segment, Cramer spoke with Ron Shaich, founder and executive chairman of Panera Bread ( PNRA), which delivered a three- cent-a-share earnings beat on a 21% pop in revenues. Same-store sales rose 6% and Panera delivered better-than-expected guidance going forward. Shaich said that customers keep coming back to Panera and are responding to its food and its loyalty program. He said the company's media is working and its operations are also starting to make a difference. Shaich also noted that thanks to record low real estate and developments costs, Panera is opening some of the strongest stores it's ever opened. Shaich said that investors shouldn't analyze Panera over any given quarter, but should look at the long term, where the company has seen growth in 13 of its past 14 quarters. He said the company has a sustainable business model and one with many years of growth ahead. When asked about rising commodity prices, Shaich said that value doesn't mean cheap, it means getting a lot for your money. He said that Panera customers are willing to pay reasonable prices, which is why the company was able to offset all of its rising food costs. Shaich concluded by saying that Panera remains committed to its stock buyback program. The company is about half way through its $600 million repurchase authorization and uses any opportunities in its share price to buy back more. Cramer said companies like Panera and Chipotle have over thing in common, customers love them, and so does he.