Healthy eating is all the rage, yet one stock has underperformed its peers. Cramer thinks that's about to change.
The Mad Money host suggests putting WhiteWave on the radar, the maker of Silk and Horizon Organic milk as a stock that's ready for a game of organic catch-up.
Although shares have already rallied about 20% ytd, healthy eating is such a hot trend, Cramer thinks WhiteWave should have advanced even more aggressively. For example, rival natural food maker Annie's has gained more than 30% while Hain is up more than 35%. And natural food market Fairway is up nearly 50%.
Looking at WhiteWave's business, Cramer thinks the relative underperformance was largely due to a handful of factors:
1. Earnings were underwhelming. "WhiteWave earned 16-cents a share, slightly beating the estimates by a penny, but organic foods are so trendy the Street expected even more," Cramer said.
2. The Street wanted greater earnings growth. Cramer said instead of showing earnings growth now, "White Wave has been investing aggressively in order to boost future earnings growth down the road." For example, in the latest quarter the company started up almond milk production at two more of its plants investing more money in one of their fastest growing products.
3. Former parent Dean Foods distributed a huge chunk of WhiteWave, a 60% stake, to its own shareholders back on May 23rd. "That dramatically increased the float here, and most of the Dean Foods shareholders who got a piece of WhiteWave just dumped the darned thing," Cramer said.