Cramer's 'Mad Money' Recap: Cramer's Game Plan
There's a fight going on over at Jack In The Box(JACK) , Cramer told viewers, and the analysts are losing. That's why Cramer said he's gone bullish on the burger chain that also includes the Qdoba chain of Mexican restaurants.
Cramer explained that Wall Street analysts have been very negative on the turnaround happening at Jack In The Box, which is why the Bank of America/Merrill Lynch upgrade Friday from underperform directly to "buy, buy, buy" was so important. He said that in the firm's prior research, the analyst hinted that he was losing conviction in his sell rating because he raised his price target yet remained bearish on the stock. But now with one analyst in the buy camp, more will follow.
Jack In The Box is a terrific turnaround story, said Cramer, as the company is refranchising its company-owned stores to franchisees. A full 73% of stores are now franchised, up from just 25%, meaning the company now has more stable cash flow and increased visibility in their earnings.
The company also blew away earnings when it last reported, delivering a 16-cent-a-share earnings beat, thanks in part to strength in its Qdoba chain. With shares trading at 17 times earnings with a 12% growth rate, Cramer said he'd be a buyer of Jack In The Box on any weakness.
Providing an Antidote
With all of the bellyaching over at Procter & Gamble(PG) , you would think the entire consumer packaged good sector is fighting for its life. But that's not the case at rival Church & Dwight(CHD) , said Cramer. The maker of Arm & Hammer, OxyClean and Trojan condoms is taking share and growing like crazy.
Cramer said that Church & Dwight has become the antidote to P&G, a North American-centric company that's committed to delivering for its shareholders. The company has a 1.8% dividend yield and a long history of under-promising and over-delivering.
So how does Church & Dwight do it? By combining both value and premium brands under one roof, then using them all to out-innovate the competition while preserving terrific gross margins.
With Church & Dwight delivering 8.4% organic sales growth, Cramer said this is one stock that should be in investors' portfolios.
Here's what Cramer had to say about callers' stocks during the "Lightning Round":