Does Tuesday’s rally have stamina? That depends on the companies reporting their sales and earnings, Jim Cramer told his Mad Money viewers. And so far it looks good.
When a company is raking in surprising profits, it’s hugely difficult to keep that stock low, Cramer told viewers, even when millions of anti-vaxxers hijack our economic recovery. That’s why shares of Chipotle Mexican Grill (CMG) – Get Report rose today, and why strong gains at HCA Healthcare? (HCA) – Get Report sent the whole care group higher, including Intuitive Surgical (ISRG) – Get Report, Medtronic (MDT) – Get Report and Abbvie (ABBV) – Get Report.
Other winners included Carnival Corp. (CCL) – Get Report, who finally gets his ships back to sea. In the financial sector, Cramer said he still loves Wells Fargo (WFC) – Get Report, the most improved bank, along with Morgan Stanley (MRS) – Get Report, another strong profit winner.
When it comes to back-to-school shopping season, you can’t go wrong with Target (TGT) – Get Report or Costco (COST) – Get Report, said Cramer, and with home buying still going strong, both Williams-Sonoma (WSM) – Get Report and RH (RH) – Get Report are also great choices.
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Executive Decree: Qualtrics International
In his “Executive Decision” segment, Cramer spoke with Zig Serafin, CEO, and Ryan Smith, Founder and Executive Chairman, of Qualtrics International (XM) – Get Report, the experience management platform that just posted a fantastic ‘beat and raise’ quarterly result.
Serafin said Qualtrics has never been more relevant or impactful to their clients than it is today. The company is on track to surpass $1 billion in revenue for 2021. Qualtrics helps clients like Urban Outfitters (URBN) – Get Report truly understand their customers, both in-store and online, across their many brands.
Smith added that Qualtrics isn’t just for customer experiences. There is a major reshuffle of workers underway thanks to the pandemic that requires companies to understand the “hearts and minds” of their employees and design programs to keep them happy and engaged. Companies that iterate and constantly improve are the ones that win in today’s market.
Cramer said Qualtrics stock is very cheap compared to its competitors.
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Executive Decree: Bed Bath & Beyond
For his second “Executive Decision” segment, Cramer went on-site to speak with Mark Tritton, president and CEO of Bed Bath & Beyond (BBBY) – Get Report, the homeware retailer reinventing itself for 21st century retail.
Tritton said Bed Bath’s new, remodeled stores are swapping the warehouse vibe for a smaller, more personalized shopping experience. Stores have less floor space, fewer SKUs, and more brand partnerships, along with more private label offerings.
Bed Bath is also embracing an omnichannel future, meeting customers wherever they love to shop. The company’s app enables everything from self-checkout to gift registration. Speaking of the registry, Tritton noted that Bed Bath is number two on the registry, only behind Amazon (AMZN) – Get Report.
When asked about the upcoming school season, Tritton said Bed Bath & Beyond is poised with great products and convenient shopping experiences to make going back to school as pain-free as possible.
Tritton closed by saying that the iconic Bed Bath & Beyond coupons will remain in your mailbox, but they are also developing new digital coupons. Look for more ideas and innovations from the company in the coming months.
The Risks of Stablecoins
With cryptocurrencies in decline, Cramer continued to highlight the risks of stablecoins such as Tether by talking to Gary Gordon, a professor at the Yale School Of Management and an expert on currencies.
Gordon explained that stablecoins are designed to be bank-like in the way they work, exchanging cash and coins one-to-one. However, unlike real banks, we don’t know what these issuers have in reserves and whether they can actually pay one-to-one.
Gordon added that while Treasury Secretary Janet Yellen and our government officials are starting to notice the risks of cryptocurrencies and stablecoins so far, they are as yet unsure of what to do. “We need to do something intelligent about them now,” he added, before their values get so high that they pose a real danger.
This turnaround looks promising
In his No-Huddle Offense segment, Cramer reminded viewers that turnaround doesn’t happen overnight. As we just heard from Bed Bath & Beyond, the company’s multi-year turnaround is just now beginning to pay off. Same goes for IBM (IBM) – Get Report.
Cramer said IBM made a very smart move when it acquired RedHat a few years ago, but you wouldn’t know it if you look at the stock price. The company took a short-term blow from its gross margins to invest in RedHat, and those investments are only now beginning to hit IBM’s profits.
Here’s what Cramer had to say about some of the stocks that callers were offering during Tuesday night’s “Mad Money Lightning Round”:
Palantir Technologies (PLTR) – Get Report: “There are a lot of smart people behind it, but I find it exhausting.”
Big 5 (BGFV) – Get Report: “That’s one I want to buy.”
Tangier Factory Outlet Centers (SKT) – Get Report: “This one is making a comeback. All the weak-handed shops are gone.”
Penn National Gaming (PENN) – Get Report: “Penn needs football season. Then it will shine again.”
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At the time of publication, Cramer’s Action Alerts PLUS had a position in ABBV, COST, WFC, MS, AMZN.