Jim Cramer on Magnum Ice Cream: "The Stock's Trading at a Pretty Sizable Discount to Its Peers"

The Magnum Ice Cream Company N.V. (NYSE:MICC) is one of the stocks on Jim Cramer’s radar recently. Cramer said that the company has “already started turning around,” as he stated:

“Unilever didn’t seem to want it, but maybe it’ll be worth more as an independent company. I’m optimistic. I’m going to tell you why. First, The Magnum Ice Cream Company is by far the largest player in the industry… Put it all together, and The Magnum Ice Cream Company has 21% global market share… This company has already started turning around, with organic volume growth going positive again, up 1.1% while organic sales are up 2.8. Remember, they were down. The company’s gross margin improved for the first time in years. I’m thinking this thing might be a gem… It seems like the company’s trending in the right direction, though. Everybody in the snack food space lives in fear of Ozempic, yet Magnum Ice Cream’s putting up solid sales and volume growth. So, clearly they’re not being hurt too badly… At the end of the day, Magnum’s simply not suffering very much from the rise of the GLPs… You’re talking about a stock that’s selling for roughly 12 to 13 times earnings. Now, let’s think about this… This is not bad…

Still, the stock’s trading at a pretty sizable discount to its peers. So, if you want to bet on the ice cream business, you got my blessing to do some buying right here. I love an IPO that comes out and doesn’t shoot up to the sky, and then everybody gets hurt. I like one that’s not on anybody’s radar screen. That’s this deal.

Here’s the bottom line: We finally, by the grace of God or at least the grace of Unilever, have a pure play ice cream stock now that The Magnum Ice Cream Company has been spun off and started trading independently. And after taking a closer look at the story, I have to say, this one’s pretty sweet… And may I also say, apropos of How to Make Money in Any Market… If you want to give a share… to a kid of a stock and you want them to follow it, I’m thinking it’s this one. I used to think it’s Disney. This one has more upside.”

The Magnum Ice Cream Company N.V. (NYSE:MICC) is a multinational ice cream and frozen dessert company that controls a major chunk of the industry.

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Disclosure: None. This article is originally published at Insider Monkey.