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Cramer: The NFL could bring “huge gains” to this stock

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This company reported better-than-expected profits this quarter. But what must really be thrilling them is the fact that Labor Day falls early this year. Here's why:

CBS reported better-than-expected profits this quarter, but what must really be thrilling them is the fact that Labor Day falls early this year.

Why?

CNBC’s Jim Cramer explains on this morning’s “Squawk on The Street”:

“CBS has a body of work that’s run all over the world. These companies are all very-well managed. The NFL is going to make them a lot. Remember, the NFL – you have an extra week of the NFL in this quarter. Be careful – that can bring huge gains for all these guys.”

(Watch more: Cramer's Mad Dash: Hits drive CBS shares)

The NFL’s scheduling rules have the first game of the season played on the first Thursday after the first Monday in September (otherwise known as Labor Day, if you were wondering). Since Labor Day is on the 2nd this year, the 18-week season begins on the second-earliest possible day.

For a networks ad sales department, an extra week selling spots during the most important thing on TV means they can make fourth-quarter numbers look especially sweet. And, for investors, that help boost earnings at the end of the year.

Another example Cramer pointed out was that the network’s popular new series, “Under the Dome”, is being renewed. This is a textbook example of corporate synergy: The series is based on a Stephen King book published by Simon & Schuster, a CBS company.

So, despite its current feud with Time Warner Cable, this is looking like a pretty good year for CBS. Its second-quarter revenues were up 11% from the previous year’s to $3.7 billion. Meanwhile, its bottom line of $476 million means that its $0.76 per share earnings beat Wall Street’s estimates by four cents.

(Read: CBS CEO talks retransmission fees)

But is that enough reason to buy its stock?

To answer that question, CNBC contributor Steve Cortes, founder of Veracruz TJM, and Talking Numbers contributor Richard Ross, Global Technical Strategist at Auerbach Grayson, look at the fundamentals and technicals of the House of Moonves.

To see Cortes and Ross analyze CBS, watch the video above.

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