If you want solid proof that things are shaping up in the U.S. economy, just take a look at discretionary spending, Jim Cramer said Wednesday on CNBC's "Mad Money."
"Consumers aren't just buying the simple, bare necessities of life anymore," he said. "They're spending money on stuff they want, stuff that nobody could ever need. And that's a terrific sign."
And with luxury items in high demand, ultra-discretionary brands like Polaris — a leading maker of snowmobiles, all-terrain vehicles, motorbikes and ultra-light military vehicles — are paying off big time. Cramer first recommended the stock back in January, he said, because even after management gave disappointing guidance, the stock actually rallied the next day.
On Tuesday night, the company knocked it out of the park once more, reporting quarterly earnings of 85 cents a share on a much better-than-expected 25.4 percent rise in revenue year-over-year. After that, the stock soared $7.37 today — marking an increase of 10 percent.
"Management's guidance for this quarter was really conservative," he said. "Talk about under-promise, over-deliver!"
Since the end of January, Polaris has doled out a 25 percent gain, but Cramer said "this high-end discretionary story has only just begun." The snowmobile maker has plenty of products in the pipeline, aggressive expansion overseas and "has shown itself to be a phenomenal executioner," he said.
To learn more about what's driving the growth of the sports vehicle business, Cramer invited CEO Scott Wine onto Wednesday's "Mad Money." Watch the video to see the full interview.
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