Cramer’s Crazy Money Recap: Walmart, Costco
Not all stocks can go up at the same time, Jim Cramer told his Mad Money viewers on Monday. There just isn’t enough money to push everything higher at the same time, he said, and that’s how rotations are born.
For decades, investors have been told that stock selection is too difficult and that they would be better off with an index fund. And while Cramer said it agrees that index funds are great for retirement accounts or those with little time or inclination to pick their own stocks, for those who do, stock picking is the place to be. ideal place.
This is because all it takes to be a good stock picker is to use your powers of observation. We all know consumers are spending again, and that’s great news for retailers like Walmart. (WMT) – Get a report and Costco (COST) – Get a report.
People are always spending on their homes, so Lowe’s (LOW) – Get a report a great buy, with everything that goes into Lowe’s like Whirlpool (WHR) – Get a report appliances and Stanley Black & Decker (SWK) – Get a report tools. HR (HR) – Get a report continues to be a favorite.
Cramer said that all of these stocks are obvious winners, all you have to do is visit their stores.
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Executive decision: XPO Logistics
In his first “Executive Decision” segment, Cramer spoke with Malcolm Wilson, the current CEO of XPO Logistics (XPO) – Get a report Europe and the new CEO of GXO Logistics, which will soon be parting ways with XPO.
Wilson explained that current XPO logistics include both transportation and logistics. Transportation components will remain with XPO, while warehousing and logistics activities will become the new GXO Logistics, which he will lead.
The new GXO will serve 30% of the Fortune 100, Wilson noted, and is driven by three emerging trends. First of all, there is the continued popularity of outsourcing. Second, e-commerce, which accounts for 40% of GXO’s business. Finally, there is the trend towards industrial automation and robotics, an area where GXO has been the first player.
When asked how Europe was recovering from the pandemic, Wilson said that in some countries, like the UK, immunization progress is similar to that in the US, but the majority of l ‘Europe should return to normal in a few months.
To take some fresh air
With the big commercial reopening to us, Cramer has brought to light another hot but forgotten theme, the great outdoors.
When Cramer spoke to Brunswick Corp. (Before Christ) – Get a report Last week, the shipbuilder said it may take one to two years before it can fully meet demand and bring inventories back to normal levels. With shares trading for less than 13 times earnings, Cramer said he was a buyer.
But Brunswick is not alone in the great outdoors. LCI Industries (LCII) – Get a report Trading at less than 15 times earnings with a 2% return. VR Manufacturer Thor Industries (THO) – Get a report trades 14 times profit and rivals Winnebago (WGO) – Get a report is trading for only 11 times the profits.
Cramer was also optimistic about Camping World (CWH) – Get a report, a story of regional to national growth, with stocks trading for just nine times earnings, and Airbnb (ABNB) – Get a report, which is at 11% of its highs.
Demand for the great outdoors has never been higher, Cramer said, and these stocks are poised to capitalize on it.
Executive decision: Lydall
For her second segment “Executive Decision”, Cramer also spoke with Sara Greenstein, President and CEO of Lydall (LDL) – Get a report, the filter material maker with shares up 25% since Cramer’s last arrival in December.
Greenstein said that while most countries around the world first learned of Lydall’s existence last year during the pandemic, her business is more than just N95 masks. She was proud to announce that Lydall’s filter media was aboard the Moxie module of NASA’s Perseverance rover currently on Mars. Lydall’s filters remove fine Martian dust from the planet’s carbon dioxide-rich atmosphere and allow the Moxie module to produce oxygen that could one day be used by astronauts.
Closer to home, Lydall continues to manufacture filter media for N95 masks, which Greenstein says will be in high demand for years to come. Lydall also manufactures critical components for electric vehicles, including materials to protect against interference, dampen sound and keep air fresh.
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A new way to invest?
In his “No Huddle Offense” segment, Cramer tapped into investment legends Warren Buffett and Charlie Munger, who both criticized Robinhood traders.
Cramer said he found it great that Robinhood had brought millions of new investors to the market. The platform certainly has its flaws, he added, but Robinhood doesn’t attract a bunch of stupid sheep, it attracts those who want a different way of investing.
While Buffett and Munger both have impressive long-term track records, they also made plenty of mistakes and missed out on many trades that the Robinhood mob has grown adept at spotting and exploiting.
It’s elitist to say that there is only one way to make money, Cramer concluded. It’s a lesson young investors are teaching us every day.
Here’s what Jim Cramer had to say about some of the actions callers offered during the “Mad Money Lightning Round” on Monday night:
Penn National Gaming (PENN) – Get a report: “I really like Penn National. I love the connection with Barstool Sports.”
Alcoa (AA) – Get a report: “It was a brilliant quarter. I am a buyer.”
Hedosophy of social capital (IPOB) – Get a report: “Wait until the acquisition is complete and it becomes Sofi.”
Hydrofarm HYFM: “I like GrowGeneration (GRWG) – Get a report in this space. “
Aemetis (AMTX) – Get a report: “These stocks are all working. It’s in an ideal situation right now.”
Palantir Technologies (PLTR) – Get a report: “I want more transparency. This society is too opaque.”
Sherwin-Williams (SHW) – Get a report: “It was a good neighborhood for them.”
Novocure (NVCR) – Get a report: “It still hasn’t been widely recognized by the medical community. When it does, it goes higher.”
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At the time of publication, Cramer Action Alerts PLUS held a position in WMT, COST.