NEW YORK (TheStreet) -- Shares of Avago Technologies (AVGO) are higher by nearly 6% as of 11 a.m. Thursday due to better-than-expected earnings results. However, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, thinks the report means there's a bigger buy out there.
Avago Technologies, a semiconductor company, beat on its fiscal fourth quarter earnings per share and revenue estimates, growing revenue by over 115%. The company increased margins and provided better-than-expected guidance.
However, it's the conference call that gave Cramer an additional clue that he discussed on CNBC's "Cramer's Stop Trading" segment. The company cited large new smartphone orders, but didn't disclose which company placed the orders.
That means it's likely Apple (AAPL) , Cramer said. Why? Apple forbids its partners from disclosing such information. Investors should buy shares of Apple based on Avago's earnings results, he suggested.
But remember, Cramer advised, invest in Apple, don't trade it.
-- Written by Bret Kenwell
TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate APPLE INC (AAPL) 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, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
You can view the full analysis from the report here: AAPL Ratings Report