As the bull market heats up, Jim Cramer pinpointed two promising takeovers that were overshadowed by a tidal wave of earnings reports and overlooked by Wall Street.
"Post [Holdings] and Cardinal Health have one thing in common here: they're not getting enough credit for how they're trying to change their stripes with these acquisitions they just announced," the "Mad Money" host said.
Post Holdings, the United States' third-largest cereal maker and the company behind Honey Bunches of Oats and Raisin Bran, is buying the United Kingdom's second-biggest cereal company, Weetabix, for £1.4 billion.
Though the Street wrote the takeover off as being too pricey, Cramer sees the payoff ahead. Weetabix does business internationally, with operations in Asia and Africa, while Post gets 93 percent of its sales from the United States and the rest from Canada.
"I think the international cross-selling opportunities could be enormous here," Cramer said, adding that the company is a smart acquirer that knows how to under-promise and over-deliver.
Cardinal Health may have slashed its full-year earnings guidance, turning investors off to its future prospects, but Cramer sees upside ahead for its $6.1 billion acquisition of Medtronic's patient care, deep vein thrombosis and nutritional insufficiency divisions.
"What really matters is that these Medtronic assets will help Cardinal Health continue to diversify itself away from that lousy drug wholesaling business that caused the darned shortfall in the first place, and they'll give the company's medical supplies segment a much needed shot in the arm," Cramer said.
Furthermore, Cardinal's disappointing guidance could give the company just enough weakness to spring from, as it expects this deal to boost earnings by 55 cents in 2019.