Regal Rexnord is 'Worth So Much More,' Don't Overlook Churchill Downs: Jim Cramer

On CNBC’s “Mad Money Lightning Round,” Jim Cramer recommended buying Regal Rexnord Corporation (NYSE:RRX). “This is just kind of a basic American company that is worth so much more than it’s selling for.”

Supporting his choice, Milwaukee-based Regal Rexnord reported better-than-expected third-quarter financial results on Nov. 3.

The company manufactures electric motors, automation solutions, and electrical motion controls.

Churchill Downs (NASDAQ:CHDN) is a “very well-run gaming company,” Cramer said. “People often overlook it. It sells very inexpensive compared to the others. I know it’s had a little bit of a run here, but I think it can go higher.”

Supporting his view, Churchill Downs reported better-than-expected third-quarter earnings on Oct. 28 and announced a new $750 million share repurchase program.

When asked about Snap (NYSE:SNAP), he said, “That and $5 will get you $5.05. You know what’s a shame about Snap? I can’t really think about what’s a shame about it.”

Snap reported mixed third-quarter financial results on Nov. 4.

Cramer said he doesn’t know about Perimeter Group Inc. (NYSE:PRM). On the earnings front, Perimeter reported mixed third-quarter results on Nov. 5.

When asked about Marvell Technology (NASDAQ:MRVL), he said, “I have to tell you, at this price, at $150, I think if you want to buy 100 shares, I would buy 25, and then I would literally wait until $100 to buy 25.”

B. Riley Securities analyst Craig Ellis maintained Marvell Technology with a Buy rating on Monday and lowered the price target from $275 to $250.

Price Action

• Churchill Downs shares gained 0.9% to settle at $98.77 on Monday.
• Perimeter shares gained 7.1% to close at $31.58.
• Regal Rexnord shares gained 6.9% to close at $180.78.
• Snap shares rose 1.8% to settle at $5.05.
• Marvell Technology shares surged 9.5% to settle at $154.60.

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