Market Overview

Cramer Breaks Down 3 Cheap Stocks That Crushed Earnings

Cramer Breaks Down 3 Cheap Stocks That Crushed Earnings

Are stocks cheaper than they appear? By many metrics they most certainly are, at least according to CNBC's Jim Cramer.

3 Cheap Stocks

For example, Johnson & Johnson (NYSE: JNJ) is trading north of $100 per share and it's also trading at just 18 times next year's estimate earnings, Cramer highlighted during Tuesday's "Mad Money." The company's earnings report also showed an "amazing, turbo-charged growth" while boasting the "single best" balance sheet of any major American company.

Coupled together, the stock is in fact "ridiculously cheap," Cramer emphasized.

Small and medium-sized companies are expected to show "explosive" revenue growth rates of 20 percent, Cramer continued. But health insure behemoth UnitedHealth Group Inc (NYSE: UNH) reported a 21-percent revenue growth rate in its earnings report yet the stock is trading at "a steal" multiple of just 19 times earnings.

Moving on to banks, Morgan Stanley (NYSE: MS) reported one of the best growth rates in recent memory with one of the lowest non-performing loans performance, Cramer said. Yet heading into a new rate cycle that could boost earnings by "billions of dollars" the stock is trading at a "ridiculous" valuation.

Apple Coming Up

Finally, there's Apple (NASDAQ: AAPL), perhaps one of the few if only companies that could double the price of its products and not lose customers.

"Yet the darned stock sells for less than 15 times next year's earnings estimate," Cramer said. "Its price is really being controlled by these tech analysts — and that's without even backing out its enormous hoard of cash."

Related Links:

Big Bank Q3 Earnings Roundup

Cramer: Why You Should Buy Apple On Weakness Every Time You Can

Posted-In: Cheap Stocks Mad Money valuation Jim CramerEarnings Media Best of Benzinga


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