Cramer's 'Mad Money' Recap: Looking for Winners in Unlikely Places

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NEW YORK ( TheStreet) -- A quarter that is not as miserable as people expected is not enough to lift a stock in today's market, Jim Cramer told "Mad Money" viewers Tuesday. Cramer said the markets want growth, margins and dividends, something investors will find in the least likely of stocks.

Cramer said that many investors expected Apple ( AAPL), a stock he owns for his charitable trust, Action Alerts PLUS , to rally on its better-than-expected quarter, as many analysts who loved the stock at its top now loathe it here at the bottom.

But Cramer said that while Apple was able to give investors a dividend boost and accelerated stock buyback program, the company failed to deliver on the next big product that will drive its growth and margins for the next few years. That's disappointing news, said Cramer, news that will likely keep Apple from beginning a significant move to the upside from current levels.

That doesn't mean there aren't stocks that have both earnings and dividends, Cramer added. Investors just need to look in unlikely places such as McDonald's ( MCD), Caterpillar ( CAT) or Pepsico ( PEP). Cramer noted that all of these companies are just as innovative as Apple in their own ways, and those new products are boosting earnings and dividends -- which is why investors have been clamoring for them.

So while Apple may have been better than expected, investors looking for the whole package should turn to the safety of stocks including Kimberly-Clark ( KMB), not Apple, Cramer concluded.

Executive Decision: David Wenner

In the "Executive Decision" segment, Cramer once again sat down with David Wenner, president and CEO of B&G Foods ( BGS), a company that announced in-line earnings on an 8.8% rise in revenue. Shares of B&G are up 186%, including reinvested dividends, since Cramer first got behind the company in October 2010.

Wenner said B&G is putting a lot of effort into reformulating many of its products to bring back the "all-natural" label, as that is what today's consumers are expecting from their foods. He said that for foods that have been reformulated, sales have been increasing -- a sign that the strategy is working.

Wenner also noted that sales have been helped by several grocery chains adding many of B&G's newer items as they reset various categories throughout their stores. He noted that some chains haven't reset in years, meaning many of his company's newest items have yet to see their full distribution potential. Another hot category for B&G is pet products.

When asked whether consumers are still trading down to private-label items, Wenner noted that as the economy has improved people have been feeling more confident and are returning to the quality brands they abandoned in the depths of the recession.

Finally, when asked about the company's perceived weak fourth quarter, Wenner said he views the "miss" as the analysts simply getting ahead of themselves because his company delivered exactly what they expected.

Cramer said B&G Foods continues to be a great growth story in the food category.

Executive Decision: Tom Falk

In his second "Executive Decision" segment, Cramer spoke with Tom Falk, chairman and CEO of Kimberly-Clark, which just delivered a three-cents-a-share earnings beat with rising sales and margins and a dividend that now yields north of 3%.

Falk said innovation is what its all about at KMB. He touted his company's new global innovation center, which is already developing new products that consumers will love. is one such innovation, where consumers can design and print their own tissue boxes.

In addition to innovation, Falk noted KMB is also a rebound in the housing market, something that's good for both the U.S. economy and the company. These windfalls are helping Kimberly-Clark to continue its 40-year trend of rewarding its shareholders with annual dividend increases.

One area of weakness for Kimberly-Clark has been the company's health-care products, something Falk attributed to a decline in U.S. surgeries.

Finally, Falk commented on his company's international growth, saying that sales in Mexico in particular have been very strong and he sees a lot of opportunities in Mexico as that economy also begins to stabilize and recover.

Cramer said Kimberly-Clark is exactly the kind of company the market has been rewarding given how well it has been rewarding its shareholders.

Lightning Round

In the Lightning Round, Cramer was bullish on Vertex Pharmaceuticals ( VRTX), US Airways Group ( LCC) and BlackRock ( BLK).

Cramer was bearish on EMC ( EMC), SandRidge Mississippian Trust ( SDT), JetBlue Airways ( JBLU) and Apache ( APA).

Mad Mail

In the "Mad Mail" viewer feedback segment, Cramer followed up on a few stocks that stumped him during earlier shows.

He said Whiting USA ( WHZ), while having a high yield, is not as good as a true master limited partnership that offers both growth and yield.

However, Cramer is a fan of Micros Systems ( MCRS), a company that sells and maintains point of sale systems for hotels, restaurants and retailers. Trading at just 16 times earnings with an 18% growth rate, Cramer said this stock is a winner.

Cramer was bearish on Golar LNG ( GLNG), advising investors to stay on the sidelines. He also panned Western Asset Mortgage ( WMC) and Two Harbors ( TWO), two stocks that are difficult for investors to understand.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer opined on the stunning rise from the dead of Netflix ( NFLX). He said the stars have realigned for the once loved, then hated but now loved once again stock.

According to Cramer, Netflix has just become "too cool" not to have and consumers are clamoring for both the original content the company offers as well as its affordable price point. Customers are not abandoning the service, as many analysts expected, and the company's new programming scheme is leaving the likes of HBO in the dust.

Cramer said what happened at Netflix is a total failure of the analysts, who should have seen at least some of the potential at the company when it was at its most hated point last year.

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-- Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL and EMC.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC Universal or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.

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