Does the rally on Tuesday have staying power? That depends on the companies reporting their sales and profits, Jim Cramer told his Mad Money viewers. And so far it’s been going uphill.
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Cramers Mad Money Recap: Chipotle, Mardi Gras, Wells Fargo
When a company is making surprising profits, even when millions of anti-Vaxxers hijack our economic recovery, Cramer told viewers it is very difficult to keep that stock down. Because of that, Chipotle Mexican Grill’s shares rose today and HCA Healthcare’s strong gains pushed the entire healthcare group up, including Intuitive Surgical, Medtronic and Abbvie.
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Another winner was Carnival Corp., which is finally bringing its ships back to sea. In the financial sector, Cramer said he still likes Wells Fargo, the most improved bank, along with Morgan Stanley, another strong profit maker.
When it comes to the back-to-school shopping season, you can’t go wrong with Target or Costco, Cramer said, and with home buying still going strong, both Williams-Sonoma and RH remain good choices.
Finally, Cramer said that automakers’ chip shortages may finally end, which is great news for both Ford Motor and General Motors.
Cramer and the AAP team are reviewing everything from revenue to politics to the Federal Reserve. Find out what they are saying to their investment club members and join the fun with a free trial subscription to Action Alerts Plus.
Board decision: Qualtrics International
In his “Executive Decision” segment, Cramer spoke to Zig Serafin, CEO, and Ryan Smith, founder and chairman of Qualtrics International, the experience management platform that just released an outstanding quarterly “Beat and Raise” result.
Serafin said Qualtrics has never been more relevant and impactful with its customers than it is now. In this way, the company is well on its way to surpassing $ 1 billion in sales in 2021. Qualtrics helps clients like Urban Outfitters really understand their customers, both in-store and online, across all of their many brands.
Smith added that Qualtrics is not just about customer experiences. Thanks to the pandemic, a major employee regrouping is underway that requires companies to understand the “hearts and minds” of their employees and develop programs to keep them happy and engaged. Companies that iterate and constantly improve are the ones that win in today’s marketplace.
Cramer said Qualtrics stock is very cheap compared to its peers.
On Real money, Cramer shares information about the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Executive decision: Bed Bath & Beyond
For his second segment, “Executive Decision”, Cramer spoke to Mark Tritton, President and CEO of Bed Bath & Beyond, the household goods retailer that is reinventing itself for 21st century retail.
Tritton said Bed Bath’s new, remodeled stores are giving up the warehouse vibe in favor of a smaller, more personal shopping experience. Stores have less floor space, fewer SKUs, and more brand partnerships, as well as more private label offerings.
Bed Bath is also banking on an omnichannel future and meeting customers no matter where they want to shop. The company’s app enables everything from self-checkout to gift registration. In terms of registration, Tritton noted that Bed Bath is number two in the registration, just behind Amazon.
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When asked about the upcoming back to school season, Tritton said that Bed Bath & Beyond is ready with great products and easy shopping experiences to make back to school as pain free as possible.
Tritton concluded by saying that the iconic Bed Bath & Beyond vouchers will continue in your mailbox, but new digital vouchers will also be developed. Look for more ideas and innovations from the company in the coming months.
The risks of stablecoins
In light of the decline in cryptocurrencies, Cramer continued to shed light on the risks of stablecoins like Tether by speaking to Gary Gordon, professor at the Yale School of Management and currency expert.
Gordon explained that stablecoins are bank-like in how they work, redeeming cash and coins one for one. In contrast to real banks, however, we do not know what reserves these issuers hold and whether they are actually able to pay one-for-one.
Gordon added that while Treasury Secretary Janet Yellen and our government officials are beginning to perceive the risks of cryptocurrencies and stablecoins, they are so far unsure of what to do. “We have to do something smart about them now,” he added, before their values soar to levels that make them a real threat.
These turnarounds look promising
In his No-Huddle Offense segment, Cramer reminded viewers that tacks don’t happen overnight. As we have just heard from Bed Bath & Beyond, the company’s multi-year turnaround is only now bearing its first fruits. The same is true with IBM.
Cramer said IBM made a very smart move in acquiring RedHat a few years ago, but you wouldn’t tell if you look at its share price. The company had to forfeit its gross margins on a short-term basis to invest in RedHat, and those investments are only now beginning to affect IBM’s bottom line.
Lightning round
Here’s what Cramer had to say about some of the stocks callers offered during Tuesday night’s Mad Money Lightning Round:
Palantir Technologies: “It has a lot of bright people behind it, but I find it tiresome.”
Tattooed Chef: “I’m sticking with Beyond Meat. That’s all I’m going to give you.”
Big 5: “I want to buy this.”
Tanger Factory Outlet Center: “This one is making a comeback. All business with weak hands is gone.”
United States Steel: “There are two steel companies, Nucor and Cleveland-Cliffs. I don’t care about the others.”
Camping World: “You are doing incredibly well. I like Thor Industries. I like Polaris Industries and I like Camping World. “
Penn National Gaming: “Penn needs football season. Then it will shine again.”
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At the time of publication, Cramer’s Action Alerts PLUS held a position with ABBV, COST, WFC, MS, AMZN.
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