Jim Cramer’s Big Data Plays

Thursday, 29 Mar 2012 | 6:43 PM ET

Big data is one of the hottest themes around, “Mad Money” host Jim Cramer said Thursday. So how should you play it?

Red Hat & EMC Looking Good
Red Hat delivers as the company beats analysts' expectations for the fifth straight quarter. As for big data, EMC is the best place to be, says Cramer. IBM is worth a look, as well, he adds.

His favorite name isEMC, which makes storage hardware.

“Whether we’re talking about big data storage and analytics, enterprise storage or data protection and security, EMC is the place to be,” Cramer said.

The stock is trading at 14.7 times earnings, despite having a 15 percent long-term growth rate, and Cramer thinks it has a lot more room to run.

He also likes IBM, which has been moving into data “pretty aggressively.” Don’t be alarmed by the share price, Cramer said. He thinks IBM remains cheap, selling for 12.6 times next year’s earnings with a 10.8 percent growth rate.

However, if you are looking for a big data play that is smaller, Cramer endorses Teradata, which is a data warehousing company. Teradata’s technology is highly respected and it has accelerating revenue growth, he said.

Those are Cramer’s favorite names, but he also suggests checking out Salesforce.com, SAP, or TIBCO Software.

When this story was published, Cramer's charitable trust owns EMC and IBM.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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