Why Jim Cramer Liked FedEx's (FDX) Quarterly Earnings

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says FedEx  (FDX) had the kind of quarter he likes to see from companies that he follows. Revenues rose, prices increased and margins expanded.

Cramer says this is "how you get an upside surprise." The stock has now doubled from the bottom, and he credits CEO Fred Smith for trimming the fat and reducing costs. Cramer says everything exploded to the bottom line and FedEx bought a lot of shares in because "they recognized the power of their franchise."

Cramer and Stephanie Link own UPS  (UPS) for their Action Alerts Plus Portfolio, and he still likes that stock because it has fallen far behind FedEx. But if you want to read a release of what drives a stock higher, as Cramer said would be the case in his Get Rich Carefully book, then he advises you look to the FedEx quarter.

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

"We rate FEDEX CORP (FDX) 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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