The company reported an "excellent" quarter, Cramer said, highlighting better-than-expected earnings, revenue and organic growth. Margins grew and the company bumped its dividends by 29%.
Consumers and remote workers are spending more time at home, and a result, they are investing in their homes. That includes workout equipment and kitchen upgrades, among other things. Now they want to see a return on that investment and eating at home is one way to achieve it.
Plus, eating home-cooked meals are a lot cheaper than going out, he added. Put it all together and it's a good situation for the company.
We last visited with CAG on July 1 and wrote that, "CAG has traded sideways for three months before Tuesday's upside move. Further gains look likely. Aggressive traders could go long CAG here, risking a close below $32 for now. The price targets are $39 and then $55." Prices reached our $39 target by the end of August and then corrected last month.
Let's see what the charts are up to this morning.
In the daily bar chart of CAG, below, we can see that the shares have found buying interest (a.k.a. support) around $34 and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line showed improvement in the back half of September telling us that buyers of CAG were more aggressive. Also we can see that the Moving Average Convergence Divergence (MACD) oscillator has crossed to the upside from below the zero line for a cover shorts buy signal.