Cramer: Get this company on your radar, now!

Ahead of earnings, Jim Cramer thinks you should know about one particular stock and the potential it presents.

"On Tuesday, we get results from Actavis, a generic drug maker, and before we listen to that quarter, I want to make sure this company is on your radar," Cramer said.

Because this stock was recommended by billionaire investor Leon Cooperman at CNBC's Delivering Alpha conference, Cramer felt it warranted serious attention.

"I trust his judgment, after all, this is the guy who told me to get behind Berkshire Hathaway in the 1980s, back when it was trading at just $200. Now Berkshire is trading over $193,000. So, when Cooperman told me Actavis was one of his top ideas, I decided to do some digging of my own, and based on our combined homework, I think he's dead right."

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Although Activis is a generic drug company, and typically Cramer shies away from generic drug makers, in this case he's bullish because there are many reasons to think shares are under-appreciated; Wall Street jargon for cheap.

"That's one thing Cooperman's Delivering Alpha ideas all had in common; they were all pretty much all under-appreciated stocks that seemed way too cheap. Actavis is no different."

Here's why:

- Actavis has global scale, it's the market leader in fast growing regions.

- The stock is currently trading at less than 13 times next year's earnings estimates even though it has a long-term growth rate of more than 19 percent.

- The acquisition of Forest Labs should create significant synergies.

- Actavis can make additional acquisitions that are highly additive to the company's bottom line.

- Many Actavis drugs, though generic, are complex and therefore not easy to replicate.

However, of all the catalysts, perhaps the one that could drive gains quickly involves the company's acquisition of Warner-Chilcott,a drug company based in Dublin, Ireland.

The deal allows Activis to benefit from Ireland's favorable tax laws. "So now, whenever Actavis buys an American drug company, they can boost that company's earnings simply by making it subject to Ireland's lower tax regime," Cramer said.

All told, both Cramer and Cooperman see plenty of reasons to own Actavis stock. According to Cooperman's analysis, Actavis could earn more than $20 per share in 2016; also he thinks its multiple could expand back to its historical average of 15 times earnings. All told, Cooperman thinks Actavis could trade $300 in the not too distant future.

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With Actavis reporting earnings on Tuesday, Cramer advocates "reading the earnings release, listening to the conference call, and then, if your own homework confirms Leon Cooperman's thesis, putting the stock on your radar and waiting for an attractive point of entry. This is a long-term story, and with the broad market under pressure, I think you can afford to wait," Cramer said.

Call Cramer: 1-800-743-CNBC

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