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Cramer’s long-term incredible winner

Tuesday, 4 Feb 2014 | 6:15 PM ET
Eaton CEO: We see Asia picking up
Tuesday, 4 Feb 2014 | 6:15 PM ET
Eaton Corporation Chairman & CEO Sandy Cutler discusses Q4 earnings, the pick-up in non-residential markets in the U.S., as well as improvement in Asia and Europe.

(Click for video linked to a searchable transcript of this Mad Money segment)

The CEO of this company is among Cramer's Bankable 21. And since Cramer got behind the stock in November 2008, it's returned a whopping 285%.

The stock is Eaton, a maker of electrical control products, power management systems, hydraulics, truck transmissions as well as aerospace components,

However, despite the strong long-term performance, in recent days the price action has been underwhelming at best.

"Eaton's come down $10 from its highs during the recent sell-off," Cramer said, and shares closed lower on Tuesday after the latest earnings showed quarterly profit margins that disappointed investors.

Daniel Grill | Getty Images

Looking at the numbers, Eaton's 2013 profit margin was 14.9 percent compared to the 15.25 percent the company projected in October.

Nonetheless, Cramer thinks there's a lot to like about the earnings.

The company said fourth-quarter net income rose to $479 million, or $1 per share, from $179 million, or 46 cents per share, a year ago. Excluding items, Eaton earned $1.08 per share, 2 cents better than the average analyst estimate, according to Thomson Reuters I/B/E/S.

Revenue increased 28 percent to $5.53 billion, while analysts looked for $5.55 billion.

"We had the strongest volume quarter, in terms of organic growth, that we had in any quarter" in 2013, said CEO Sandy Cutler.

And Eaton has digested its acquisition of Copper Industries, a move that could present significant synergies in the days ahead.

Also, the company is projecting that overall manufacturing and industrial production will rise at a faster clip than the global economy in 2014, which Cutler said would increase about 3 percent.

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All told, the current weakness may present opportunity.

"It's an incredibly well-run company that sports a 2.4% yield," Cramer said. "And CEO Sandy Cutler is a CEO I think you can put money behind. Yes, there were flaws in the latest results but I wouldn't abandon this stock."

Call Cramer: 1-800-743-CNBC

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