Jim Cramer's 'Mad Money' Recap: Next Week's Game Plan

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NEW YORK (TheStreet) -- We got a picture perfect labor number today, Jim Cramer told "Mad Money"  viewers Friday, and that means next week's game plan can once again focus on individual stocks.

On Monday, Cramer said, he'll be focused on PVH Corp (PVH), the apparel maker he expects will do well but it will also shed light on which other retailers may be bucking the trend this holiday season.

Next, on Tuesday, Burlington Coat Factory (BURL) and AutoZone (AZO) will be reporting. Cramer expects Burlington to report a good quarter but AutoZone should be having an even better one. He advised buying AutoZone on its traditional after-reporting weakness but avoid rival Pep Boys (PBY) at all costs. Also on Tuesday: Toll Brothers (TOL), the home builder that, like PVH, should provide insight into whether other companies, mainly the home-related names, are likely to do well.

Then, on Wednesday, it's Costco (COST) and Mens Warehouse (MW) taking center stage. Cramer said that Costco, an Action Alerts PLUS holding, remains a fave, especially on weakness. But Mens Warehouse has too much going on, which makes it too hard to own.

Turning to Thursday, Ciena (CIEN) will be reporting, and Cramer said this company is taking share and will keep going higher. He was less bullish on Lululemon Athletica (LULU), however, saying he needs to see that company's new CEO before opining.

Finally, on Friday it's the next set of macro economic data with the producer price index. Cramer said he hopes earnings will be strong enough to withstand whatever is reported in this data.

Speculation Friday

For "Speculation Friday," Cramer turned his sights onto a stock that's been murder for your portfolio, McDermott International (MDR). Shares on McDermott have fallen 28% so far this year despite record spending on offshore oil rigs, a trend that's likely to continue for years to come.

So how can McDermott be doing so poorly in such a great environment? Execution. Cramer said the company has been bidding on jobs with ultra thin margins, then mismanaging them with huge cost overruns. Fortunately, the company's CEO is retiring this month and Cramer said he's a fan of the replacement.

Things have been so bad at McDermott that expectations have finally gotten too low for the stock, said Cramer. Shares seem almost impervious to bad news because all of that bad news is now baked in. The company also has a rock-solid balance sheet going for it which, coupled with new management, may be a recipe for success.

McDermott is now just a $7 stock that trades at 18.8 times earnings with a 17% long-term growth rate. Cramer said he expects the company to beat its 2014 estimates, which should allow shares to finally stem the decline.

Xooming the Globe

When it comes to transferring money around the globe, should investors stick with the big boys or upstart Xoom (XOOM), which just came public this Feburary but has fallen precipitously over the past few weeks, down 24% from its highs? That was the question posed to Cramer on an earlier show, and one he was prepared to answer tonight.

Cramer said Xoom has a unique business model in the money transfer world. Rather than relying on physical locations, the company mainly transfers money online via its Web site and an affiliation with Wal-Mart (WMT). This model doesn't allow the company to accept cash, as the big boys MoneyGram (MGI) and Western Union (WU) can, but that hasn't seemed to matter up until recently.

Cramer said the huge decline in Xoom was a direct result of the typhoon that ravaged the Philippines. Turns out Xoom gets 35% of its revenue from this single country and nearly 70% of its revenue from just three countries -- Philippines, India and Mexico. This lack of diversification will cost the company several quarters to regain its footing. That said, Cramer liked Xoom's prospects up until the disaster hit.

So what about Western Union and MoneyGram? Cramer said MoneyGram has been the winner in 2013, with shares up 60%, but that's not likely to continue into 2014 as new regulations will add cost pressures to the company's bottom line. Cramer said he's betting on Western Union into the new year because that stock trades at 11 times earnings with an 8.6% growth rate.

Lightning Round

In the Lightning Round, Cramer was bullish on Red Hat (RHT), DepoMed Inc (DEPO), CVR Energy (CVI), Chesapeake Energy (CHK), United Community Banks (UCBI), Randgold Resources (GOLD), Cummins (CMI) and DryShips (DRYS).

Cramer was bearish on iShares Silver Trust (SLV) and Westport Innovations (WPRT).

Executive Decision: Todd Teske

In the "Executive Decision" segment, Cramer spoke with Todd Teske, chairman, president and CEO of Briggs & Stratton (BGG), the small-engine maker that's making a comeback with the housing recovering and a successful restructuring plan. Cramer admitted he was wrong to recommend this stock after hurricane Sandy last year, but is now willing to reconsider.

Teske said he's excited about the upcoming lawn and garden season now that the housing market is recovering. He said Briggs will be offering 40 new products this year, including the quietest lawn mower on the market. All of its user-driven innovation will move the needle for his company.

Teske noted that his company does have portable generators in its lineup, but that represents a smaller segment of the business than snow blowers, lawn mowers and pressure washers.

Teska also said part of Briggs & Stratton's success stems from education -- letting customers know why its products are better. The company does that both in stores as well as online and through digital marketing and videos on YouTube, all of which help spread the company's name and reputation.

With inventories at lower levels, Cramer said there's a lot to like with Briggs & Stratton, even more than he liked with his ill-timed recommendation last year.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer dug in to determine whether the recent declines in Ulta Salon (ULTA) and Five Below (FIVE) represented broken stocks or broken companies.

Cramer said he got very worried when Ulta blamed everything from a "heighten promotional environment" to "less-certain consumers" for its weakness, leading him to deem this a broken company. But Five Below encountered only a small glitch in its results, one that can be easily correctly. With the bar now lowered, Cramer said Five Below is merely a broken stock, which is evident by how quickly it seems to already be recovering.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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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 CMI, COST and RHT.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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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 TheStreet.com. 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 TheStreet.com, 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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