GO
Loading...

Cramer: After 2,000% Gain, Now What?

If you'd bought this stock at the generational lows, you'd have massive profits. Can this stock possibly have more room to run?

"Yes," said Cramer on Tuesday's broadcast.

The Mad Money host was talking about Wyndham Worldwide. "Remember, at almost exactly this time four years ago, everyone was scared out of their wits," Cramer said. "The economy looked like it was sliding into a depression, and the averages were hitting their generational lows."

Therefore, it might come as little surprise that the Street grew very cautious of Wyndham among other stocks — a hospitality company that was not only in the hotel business, but also in the time share business.

Largely the stock market was concerned about Wyndham's viability. Had the nation slipped into a very serious recession, leisure travel would have taken a big backseat to things such as food, clothing and shelter.

But the worst did not happen.

And, as Warren Buffett likes to say, had you been greedy when others were fearful—that is, had you bought Wyndham Worldwide back in early March 2009, you'd have some serious gains in your portfolio.


John Cowie | E+ | Getty Images

"Four years ago at the generational lows, people were worried about Wyndham's viability, and the stock bottomed at $2.92," Cramer explained. "Now it trades around $61—that's a gain of 2,020 percent!"

And looking forward, Cramer thinks there's more to come.

"Wyndham's latest quarter, reported in early February, was fabulous," he said.

Wyndham Worldwide last released its earnings data on Wednesday, Feb. 6. The company reported $0.63 earnings per share for the quarter, beating the analysts' consensus estimate of $0.60 by $0.03. The company had revenue of $1.09 billion for the quarter, compared to the consensus estimate of $1.05 billion.

-------------------------------------------------------------------------------------
Read More from Mad Money with Jim Cramer
Sell Now? Risk Seller's Remorse
Cramer: This Stock for the Dogs!
Cramer's Crazy Costumes: An 8th Anniversary Celebration
-------------------------------------------------------------------------------------

Also the stock has been the object of several noteworthy upgrades.

Deutsche Bank lifted their target price on Wyndham from $57 to $65. According to the website Zolmax News, Telsey raised their price target on Wyndham to $64. And JPMorgan Chase reiterated its "overweight" rating in January with a $65 price target.

The company also recently announced a quarterly dividend, which is scheduled for Friday, March 29. Investors of record on Thursday, March 14 will be paid a dividend of $0.29 per share. This represents a $1.16 annualized dividend and a dividend yield of 1.83 percent.

All told, Cramer likes what he sees. "I know it's up huge from the bottom but I think it could have more room to run," he said.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book