NEW YORK ( TheStreet) -- Investors who want to supercharge their portfolios need to look for stocks that have successfully changed their business model, Jim Cramer told his "Mad Money" TV show viewers Tuesday, as the Dow Jones Industrial Average eclipsed the psychological 13,000 barrier. Cramer said that companies who have changed their model, but are still unrecognized by Wall Street or panned by the pessimists, make for terrific investing opportunities. Consider Priceline.com ( PCLN), a stock that soared up $41 a share, or 7%, on the heels of its strong earnings. Cramer said this company successfully changed its business, from a negotiation-centric model, to one where travelers can save on just about everything with no negotiating needed. The result? Not only strong earnings, but also strong upside guidance from the company. Cramer said Priceline now has great earnings visibility and is in control of its own destiny, leaving the analysts with no choice but to upgrade their forecasts. Cramer said this same pattern has popped up in Apple ( AAPL), a stock which he owns for his charitable trust,
New Face of Technology"When you think about tech, don't think about hardware, software and the Internet," Cramer told viewers, "think about innovation." He said that technology companies are all about game-changing innovations, which is why athletic apparel maker Under Armour ( UA) is the new face of technology. Cramer explained that Under Armour's growth has come because of the company's moisture-wicking compression apparel, a major accomplishment for both the Under Armour and for athletes worldwide. Compression apparel was invented a long-time ago, but Cramer said the company never stopped innovating and is now creating products to take market share in new markets. Under Armour's Charged Cotton apparel, for example, dries five times faster than regular cotton, noted Cramer, and is perfect for those who prefer natural vs synthetic fibers in their clothing. Under Armour said in a recent conference call that Charged Cotton apparel could quadruple its addressable market. But the company isn't stopping there. Under Armour is also releasing Storm, a waterproof sweatshirt, along with new running shoe technology to take on shoe giant Nike ( NKE). The company also has new fabrics in the works that repel heat from the sun. Greater still, Under Armour is making strides in appealing to women, with new women's apparel and fabrics coming soon. With all this effort putting the company's brand to work in new areas, Cramer said it's easy to see why Under Armour grew 38% last year. He said the company's high-tech products have pricing power, meaning that input cost increases can be passed onto the customer and the company doesn't have to discount its products in order to sell them. Trading at 29 times earnings, shares of Under Armour might seem expensive, said Cramer, but factoring in the company's 20% growth rate and its potential to tap into new markets and shares quickly become very inexpensive.
Better PizzaIn the "Executive Decision" segment, Cramer checked back in with Patrick Doyle, CEO of Domino's Pizza ( DPZ), a turnaround stock that delivered a three-cent-a-share earnings beat with 6.8% same store sales growth. Shares of Domino's shot up 15.7% on the news and have risen 278% since Cramer first recommended it in January, 2010. Doyle said the secret to Domino's success is simple: better pizza. He said it's been two years since the company relaunched its pizza and the better food and better experience have customers coming back. Doyle explained the phenomenon as "a beautiful thing." Also helping in its growth is technology. He said that nearly one-third of the company's orders now come digitally, with 6% of sales coming via mobile devices. This trend towards self-service ordering is not only saving Domino's money, he said, but also improving the customer experience. He also said that social media is helping Dominos connect with customers in a whole new way. When asked whether Domino's is taking share from its competitors, he said that the pizza category as a whole is growing at the same time that Domino's is taking share. He said that regional players in particular simply cannot provide the experience that Domino's provides. Turning to rising food costs, Doyle once again noted that Domino's is 90% franchised, meaning that franchisees bear the brunt of food costs, not the company. That said, Doyle also said that commodity costs are only forecast to rise 1% to 2% this year, meaning that store profits will be up. Finally, he talked about Domino's international efforts. He said that business is booming in India, where it's been easy to adapt Domino's products to a largely vegetarian population. Doyle was a little cautious when discussing China however, saying that the company is moving slowly in that country and currently only has 15 stores. Cramer said Domino's is still a great growth story and he continued to recommend the stock.