Why Jim Cramer Would Buy Comcast (CMCSA), Time Warner (TWC) But Sell Bank of America (BAC), Amazon (AMZN)

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says Monday's Bank of America  (BAC) news shows that the bank is more dysfunctional than he had previously thought. He owns the stock for his charitable trust and calls the situation "embarrassing."

Cramer says he wishes he did not own the stock for the charitable trust and says he would cut it if it rallies. He is shocked that Bank of America did not know about the financial report error and says the mishap shows the banks are too hard to run; however, Cramer points out Monday's decline in the stock was not an earnings hit and believes the stock will rally.

Cramer also says the problem with Amazon  (AMZN) is that it did exactly what people wanted: it had great growth and said it would spend significant dollars to have a presence in China. He believes that stock would have gone up $30 in a different environment instead of down $30. Cramer suggests Amazon shareholders should wait for investors to buy Amazon and then sell the stock at a higher price.

Finally, Cramer says Comcast  (CMCSA) had a great quarter with great cash flow and investors should own the stock. Time Warner  (TWC) reports this week and Cramer believes the company will have a strong quarter. He expects more share buyback and calls it "a great place to be."

Must Watch: Jim Cramer Would Buy Comcast, Sell Bank of America and Amazon

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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Separately, TheStreet Ratings team rates COMCAST CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate COMCAST CORP (CMCSA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • CMCSA's revenue growth has slightly outpaced the industry average of 3.9%. Since the same quarter one year prior, revenues rose by 13.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 31.48% and other important driving factors, this stock has surged by 26.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CMCSA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • COMCAST CORP has improved earnings per share by 31.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COMCAST CORP increased its bottom line by earning $2.56 versus $2.29 in the prior year. This year, the market expects an improvement in earnings ($5.75 versus $2.56).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 30.2% when compared to the same quarter one year prior, rising from $1,437.00 million to $1,871.00 million.
  • You can view the full analysis from the report here: CMCSA Ratings Report

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Separately, TheStreet Ratings team rates TIME WARNER CABLE INC as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate TIME WARNER CABLE INC (TWC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Powered by its strong earnings growth of 26.86% and other important driving factors, this stock has surged by 51.40% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.9%. Since the same quarter one year prior, revenues slightly increased by 2.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TIME WARNER CABLE INC has improved earnings per share by 26.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TIME WARNER CABLE INC reported lower earnings of $6.71 versus $6.91 in the prior year. This year, the market expects an improvement in earnings ($7.73 versus $6.71).
  • The net income growth from the same quarter one year ago has exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 19.4% when compared to the same quarter one year prior, going from $401.00 million to $479.00 million.
  • Net operating cash flow has remained constant at $1,397.00 million with no significant change when compared to the same quarter last year. In addition, TIME WARNER CABLE INC has modestly surpassed the industry average cash flow growth rate of -2.98%.
  • You can view the full analysis from the report here: TWC Ratings Report

STOCKS TO BUY: TheStreet's Stocks Under $10 has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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