Cramer Stock Picks Post Modest Gains As Markets Rise Again

The Dow Jones Industrial average extended its rally for a seventh consecutive day, gaining 4 points to close at 9,543 on Wednesday. New positive economic data continued to fuel the stock market rally. However, the rally appears to be tapering off as a more cautious sentiment becomes prevalent in the market.

Here is a review of the performance of Jim Cramer’s stock picks from Tuesday’s Mad Money show.

BJ’s Wholesale Club (BJ: 45.55 +1.13%)
In part 2 of the weeklong look at the next “discount king”, Jim Cramer focused on Costco (COST: 56.71 +0.89%) and BJ’s Wholesale Club. Cramer likes their membership model which also encourages customers to continue regular shopping habits. However, Cramer prefers BJ’s because the company is currently increasing their same store sales, while Costco has been flat or even slightly declining. Cramer also likes the fact that BJ’s offers nearly twice as many products as Costco, but has only one third as many stores as Costco. This presents the company with tremendous growth opportunities which BJ’s management intends to capitalize on. Finally, BJ’s currently trades at a discount to Costco’s valuation, but Cramer believes that will soon change. BJ’s stock was up 1.4% on the recommendation, while Costco gained 1.2%

Vale (VALE: 27.80 +0.87%)
Shares of the mining company dropped 0.7% despite a moderate recommendation from Jim Cramer yesterday. Morgan Stanley and HSBC recently put out conflicting reports with one upgrading and the other downgrading VALE’s stock. Cramer sided on the side of the upgrade due to rising iron ore and nickel ore prices and continued demand outside of China.

Cramer’s Lightning Round stock picks:

Medivation (MDVN: 9.51 +1.49%) dropped 0.7% – Cramer recommends the stock only as a speculative play.

Babcock and Brown Air Limited (FLY: 11.70 +0.86%) rose 4.2% – Cramer was bearish on this stock because he doesn’t like the aircraft leasing business and has been burned before.

Union Pacific (UNP: 74.67 +0.43%) dropped 1.0% – “Union Pacific is a great company that I think, at any pullback you pull the trigger. There is a lot more room to run.”

Seaspan (SSW: 11.28 +0.80%) fell 0.3% – Cramer feels that the stock is doomed.

Alcoa (AA: 11.17 +1.36%) dropped 0.7% – “I think Alcoa is dead money.”

Boise (BZ: 5.99 +2.92%) fell 2.8% – “I think we missed that stock already.”

Hexcel (HXL: 18.69 +1.69%) declined 0.4% – “I don’t want to be in Hexcel.”

First Niagara Financial Group (FNFG: 13.41 -0.67%) rose 0.4% – “I think First Niagara might be best in show. It’s got a dividend.”

Weyerhaeuser (WY: 16.22 -1.64%) jumped 0.9% – Cramer is bullish on the stock and believes it is cheap.