Tommy Hilfiger parent PVH is a buy ahead of earnings

When he starts to analyze a company, Cramer likes to look at its recent earnings performance.

“In other words, what have they done for you lately?” he said. “In the case of PVH, the trend [is] your friend.”

In its last eight quarters, PVH has beat Wall Street’s earnings estimates eight times and topped revenue estimates seven times, with the only revenue miss occurring a year and a half ago.

Most of PVH’s quarterly results have also topped the company’s own guidance. And while Cramer recognized that past performance doesn’t guarantee future results, he liked the bullish signs.

“It helps to know that in recent years, PVH has become a well-oiled machine,” he said. “Even better, the company’s sales have been accelerating over the past few years and accelerating revenue growth is something Wall Street loves so much that we normally just call it by its acronym in Cramerica, ARG.”

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