Tracking Jim Cramer: 5 'Mad Money' Picks From Jan 5
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Stock market specialist Jim Cramer recommended that you buy these five stocks one month ago on his January 5th episode of Mad Money. In this article, I analyze his picks on a relative value basis and analyze each stock's performance since Cramer's recommendation.
Chevron Corporation (NYSE: CVX): When Jim Cramer recommended this stock a month ago it was at $109.10 per share and today it's at $107 per share. In the same time period the S&P has gone from 1250 to 1314, a gain of 64 points. The stock has been range bound over the past year between $90 per share and $110 per share. However, it does pay out a nice dividend and the company raises the payout fairly consistently. The current dividend is $3.24 per share (annually) with a yield of 3%. Chevron Corporation is one of the six major oil companies in the world and the second largest in the United States. The company's operations consist of oil production, mining and petrochemical manufacturing as well as retail gas stations that include Chevron, Texaco, and Caltex. Chevron Corporation conducts business in one form or another in over 180 countries around the globe. Even though the stock is closing in on its 52 week high of $110.99 per share it is widely believed to be underpriced. The company's two closest competitors are BP (BP) and Exxon Mobil Corporation (XOM). BP currently has a PEG ratio of 1.66 with a five year forecast earnings growth of 4% and Exxon Mobil Corporation currently has a PEG ratio of 2.2% with a five year forecast earnings growth of 4.7%. Chevron Corporation has a PEG ratio of 1.05, confirming that it is still relatively cheap for its five year forecast earnings growth of 7.5%.
Dendreon (NASDAQ: DNDN): One month ago Jim Cramer recommended this stock. At the time it was $10.62 per share and today it's at $13.25 per share. In the same time period the S&P has gone from 1250 to 1314, a gain of 64 points. Dendreon took the ultimate beating in August of 2011 as it became clear to investors the management of the company was bungling the production and marketing of what could be a blockbuster drug-- Provenge. After losing 60% of its value overnight, the stock has fallen further as short sellers took the bait and drove a stock that was $43.96 per share down to $6.46 per share. The expense of the treatment and uncertainty about doctor reimbursement from Medicare, along with the perceived incompetence of the management, will probably keep the stock hem strung until strong numbers are announced. In the short term a short squeeze does seem to be developing that you may want to take part in and the sell off does seem to be overblown when you look at all the facts. The company's two closest competitors are Progenics Pharmaceuticals Inc. (PGNX) and Sanofi American Depositary (SNY). Progenics Pharmaceuticals has had year over year quarterly revenue growth of 195% and Sanofi has had year over year quarterly revenue growth of only 11%. Dendreon's year over year quarterly revenue growth of 218% is comparatively superior even though it did not meet the company's expectations.
Ford Motor Company (NYSE: F): When Jim Cramer recommended this stock a month ago it was at $11.59 per share and today it's at $12.73 per share. In the same time period the S&P has gone from 1250 to 1314, a gain of 64 points. The company also felt confident enough to reinstate its dividend this quarter-- for the first time in six years. The dividend amounts to $.20 per share, which makes the dividend yield 1.6% at the stock's current price. Ford Motor Company finances and sells automobiles worldwide and is presently the fifth largest manufacturer in terms of production volume. The company sells its automobiles under the Ford and Lincoln brands. To take full advantage of the company's economies of scale Ford has developed the One Ford campaign. In the past Ford has produced different styles and models of cars for and in different parts of the world. With the One Ford campaign Ford hopes to save design and production costs by producing a single fleet of vehicles for all markets worldwide. Fords closest competitor is General Motors Company (GM) in the United States. General Motors Company currently has a PEG ratio of .59 with forecast earnings growth of -3.4% in 2012 and 25% in 2013. Ford Motor Company also has an inexpensive PEG ratio of .84 with forecast earnings growth of -15% in 2012 and 18.5% in 2013.
General Electric Company (NYSE: GE): One month ago Jim Cramer recommended this stock. At the time it was $18.55 per share and today it's at $18.80 per share. In the same time period the S&P has gone from 1250 to 1314, a gain of 64 points. General Electric Company also pays out a nice dividend of $.68 per share with a dividend yield of 3.6% at the stock's current price. Furthermore, the company has a history of raising the dividend on a fairly consistent basis. General Electric Company is classified as a multinational conglomerate and is ranked the second largest company in the world. The company is diversified into a variety of different activities including manufacturing, financial services, energy and healthcare to name just a few. In recent years the company has been focusing on its more profitable segments such as healthcare, medical imaging, engine, energy, and other core manufacturing businesses. The only real competitor with General Electric Company at this level is Siemens AG (SI). Siemens AG currently has a PEG ratio of .47 with forecast earnings growth of -10.7% in 2012 and -18% in 2013. General Electric Company currently has a PEG ratio of 1.01 and a much better earnings growth forecast of 21% in 2012 and 12.5% in 2013.
Lowe's Companies (NYSE: LOW): When Jim Cramer recommended this stock a month ago it was at $26.37 per share and today it's at $26.73 per share. In the same time period the S&P has gone from 1250 to 1314, a gain of 64 points. The stock is on a short term trend that began in October of 2011 when it was below $19 per share and it is now approaching its 52 week high of $27.57 per share. Lowe's Companies also pays out a dividend of $.56 per share (annual) that amounts to a dividend yield of 2.1%. The company has also increased the dividend on a fairly consistent basis. Lowe's is a member of the top ten retail companies in the United States as well as the second largest home improvement company in the world. Lowe's Companies has recently launched its new online tool MyLowes a move it hopes will help it pick up some market share it has lost to its closest competitor Home Depot (HD) over the past few years. Home Depot currently has a PEG ratio of 1.36 and a five year earnings growth forecast of 14%. Lowe's Companies similarly has a PEG ratio of 1.34 and a five year earnings growth forecast of 12.2%.
Motley Fool newsletter services recommend Chevron, Ford and Lowe's Companies. The Motley Fool owns shares of Dendreon and Ford. Vatalyst has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.