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. (NASDAQ:ORLY).

“You want to buy the one that's not going to stock split, which is AutoZone (NYSE: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. (NASDAQ:ASML). He recommended buying Lam Research Corporation (NASDAQ: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. (NYSE:ONTO), adding that he likes Agilent (NYSE: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 (NYSE:FLR). “Engineering and construction, we're going to buy letter J, we'll buy Jacobs (NYSE: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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