When asked whether customers like the beleaguered Research In Motion ( RIMM) can hurt the company, Main said Jabil will remain as a "go-forward" partner for RIM. But with mobility now accounting for less than 10% of sales, he doesn't see RIM or any other single customer hurting Jabil's performance. Cramer said that with Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS , expected to have a good second half of the year, Jabil should, too. He told investors to stick with the company.
UPS Vs. FedEx
When it comes to shipping companies, is UPS ( UPS) or FedEx ( FDX) the better stock to own? According to Cramer, it depends on your time horizon and risk tolerance. Cramer said investors looking for a quick gain should consider FedEx as the company trades at just 11 times earnings compared to 14 times earnings for UPS. FedEx is also in the middle of a restructuring, retiring older planes in tits fleet to save on fuel costs. All of those savings should become readily apparent at the company's analyst day in October, noted Cramer, which is why for the short term FedEx is the better trade. But investors looking for a longer-term investment should consider UPS, said Cramer, as UPS has a higher dividend yield of just under 3%, and is the more consistent operator. UPS is currently buying the euro-based TNT, which, when the deal closes, will make UPS the largest shipper in Europe and help it realize up to $1.3 billion in cost savings by 2016. While UPS maintains that the shipping business is just fine, Cramer said the European overhang will mean investors will be waiting longer for their gains. That's not a problem. however, as UPS offers the higher dividend yield, said Cramer, but investors will be paying more for that slow but consistent growth.
Here's what Cramer had to say about callers' stocks during the "Lightning Round": Windstream ( WIN): "They blew the quarter and I need to hear from them. I am not recommending them." Roundy's Supermarket ( RNDY): "I'm sticking with them. That's not an expensive stock."