Deckers is up 15% from Cramer’s recommendation, when it traded at $84.55, thanks to an upside surprise. The company beat the Street’s estimates by 34 cents a share and guided higher for the fourth quarter. Management was very positive on the conference call, and Cramer said he thinks the stock “is still a great story.”
Under Armour reported an “exceptional” quarter on Tuesday, besting the analysts’ predictions by 8 cents a share. But it was a dismal outlook for the fourth quarter that took the stock down 12% today: Management said sales would drop to $201 million from $270 million in Q3. Apparently, a glut of inventory is forcing Under Armour to discount merchandise, and that will hurt revenues. So investors should avoid UA.
Lastly, Cramer revisited a stock that stumped him during the Oct. 16 Lightning Round, Neutral Tandem . The company allows phone companies to more efficiently and cost effectively send traffic to other carriers, and it’s “a cash machine.” Investors’ fears about competition pulled the stock down 30% since the Aug. 6 earnings report, but Cramer said TNDM’s rivals lack the scale necessary to be a threat. So with the stock trading at 12 times 2011 earnings and its 23% long-term growth rate, Neutral Tandem is “a steal.”
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