Jim Cramer Prefers AutoZone Over Rival: 'Buy The One That's Not Going To Stock Split'

On CNBC’s “Mad Money Lightning Round,” Jim Cramer said no to O’Reilly Automotive, Inc. ORLY.

“You want to buy the one that’s not going to stock split, which is AutoZone AZO,” he added.

Adding support to his view, O’Reilly Automotive posted first-quarter earnings of $9.35 per share on April 23, missing market estimates of $9.94 per share. The company’s quarterly sales came in at $4.14 billion versus expectations of $4.17 billion.

AutoZone has outperformed the market over the past 15 years by 10.81% on an annualized basis producing an average annual return of 22.06%. Currently, the company has a market capitalization of $62.8 billion.

See Also: Here’s How Much $100 Invested In AutoZone 15 Years Ago Would Be Worth Today

Cramer said the last couple quarters have been weak for ASML Holding N.V. ASML. He recommended buying Lam Research Corporation LRCX over ASML.

Supporting his view, ASML Holding reported a first-quarter sales miss on April 16. Sequentially, revenue declined by 16.75% from €9.3 billion in the fourth quarter.

Cramer said no to Onto Innovation Inc. ONTO, adding that he likes Agilent A.

Onto Innovation issued second-quarter guidance below estimates on May 8. The company sees second-quarter adjusted EPS of $1.21-$1.35, versus market estimates of $1.50. The company expects sales of $240.00 million —$260.00 million, versus projections of $269.10 million.

The Mad Money host said no to Fluor FLR. “Engineering and construction, we’re going to buy letter J, we’ll buy Jacobs J,” he added.

UBS analyst Steven Fisher maintained Fluor with a buy rating on May 7 and lowered the price target from $49 to $48.

Price Action:

• ASML shares fell 1.4% to settle at $758.36 on Thursday.
• O’Reilly Automotive shares rose 3.4% to close at $1,370.13 during the session.
• Onto Innovation shares fell 5.8% to settle at $98.04.
• Fluor shares fell 0.5% to close at $38.53 on Thursday.

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