Cramer Says Buy Cabela’s, American Electric Power; Stay out of DR Horton and AES

Jim Cramer made the following calls on July 29th, 2013. What do you think about his picks?

Cabela’s Inc. (NYSE:CAB): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Sell on March 8, 2013. The stock’s 52-week high is $72.54, and its 52-week low is $38.44.

Cramer liked Cabela’s over Smith and Wesson (NASDAQ:SWHC) saying that if he wanted exposure to guns, Cabela’s was the stock he would buy. Cabela’s posted strong earnings recently growing retail revenue as well as net revenue both by more than 20 percent.

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DR Horton Inc. (NYSE:DHI): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on April 25, 2013. The stock’s 52-week high is $27.75, and its 52-week low is $16.93.

Cramer told viewers to get out of DR Horton on the current weakness in the housing market, saying that while housing might pick up in January, no one can wait until then. The boom in housing so far this year has caused mortgage rates to spike, which in turn has put pressure on builders like Horton as the market cools off. Still, recent earnings showed a substantial gain of 184 percent in pretax income up to $205.1 million.

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American Electric Power Co., Inc. (NYSE:AEP): Jim Cramer ranked this stock a Buy. Cramer previously ranked this stock a Buy on July 25, 2013. The stock’s 52-week high is $51.60, and its 52-week low is $40.56.

AEP electric power got the buy signal during the lightning round, with Cramer recommending this stock instead of AES (NYSE:AES) in the utility space. AEP showed a slight loss in the second quarter of this year, down from $0.75 per share to $0.69 per share.

aep

The AES Corporation (NYSE:AES): Jim Cramer ranked this stock a Sell. Cramer previously ranked this stock a Buy on May 21, 2013. The stock’s 52-week high is $14.00, and its 52-week low is $9.52.

AES was shunned in favor of American Electric Power last night, which posted a loss in the second quarter of this year. AES’s earnings are due next week on August 8th.

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