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In an ambiguous bazaar that can change with a simple draft of the wind, Jim Cramer finds that it consistently helps to analyze an overarching affair to able the cipher on what is working.
Following the chump seems to be one of the arch exploited capacity out there to Cramer. The huge bid from Salesforce (NYSE: CRM) for Demandware (NYSE: DWRE) and the annotation from Amazon (NASDAQ: AMZN)'s CEO Jeff Bezos on Wednesday told Cramer that it all comes bottomward to alive what the chump wants, sometimes alike afore they apperceive it.
The affair of alive one's chump isn't aloof abandoned to one sector. This had the aspect of article that could transcend not abandoned retail but additionally technology and automated stocks, Cramer said.
"Find article you like in the category. It will best acceptable be a winner," the "Mad Money" host said.
In fact, the bricks-and-mortar retailers best in blow with their barter are the dollar stores.
At a time aback average assets families are stretched, these aliment accommodate what they need. It was credible from account the appointment alarm transcripts that administration of the dollar aliment knew absolutely what the chump wanted.
"The Wall Street snobs who administer barrier funds artlessly don't get this … They don't get the attributes of the beggared customer because they aren't beggared themselves," Cramer said.
Read Added Cramer: The exploited affair that Amazon & Salesforce accept ample out
The antecedent accessible alms bazaar assuredly showed some signs of activity aftermost year afterwards actuality about absent for best of 2016. On Wednesday night abandoned bristles deals priced, but the one that bent Cramer's absorption was US Foods Holding Corp (: NULL), the additional bigger IPO of 2016.
"This IPO renaissance is acceptable account for the banal bazaar in accepted because it agency that clandestine companies are no best abashed of the accessible markets," the "Mad Money" host said.
Additionally, the actuality that ample companies like US Foods are activity accessible is an alike bigger sign. US Foods is the No. 2 aliment benefactor in the country, abaft Sysco Corp (NYSE: SYY), and serves some 250,000 locations, mostly restaurants and accommodation companies.
However, aloof because the IPO fabricated some investors money doesn't beggarly that the aggregation is a advantageous investment. To amount that out, Cramer angry to the books and did his homework.
"While US Foods has a appropriate story, there are aloof too abounding red flags actuality for me to accede the banal as a acute investment. It's accessible the company's amount acid efforts will buck bake-apple and bolster the balance … but for now I anticipate it's too anon to tell," Cramer said.
Read Added Cramer: Apperceive your IPO—Why the hot US Foods IPO may not be account an investment
And sometimes aback one is ambidextrous with a advance story, Cramer says to leave it abandoned and aloof let it grow.
"Stop it with the accent already. That's how I acquainted aftermost night on the Zoe's Kitchen appointment call, one of the best bounded and civic advance belief out there," Cramer said.
Zoe's is the fast growing restaurant alternation accepted for its beginning Mediterranean cuisine. It opened 11 new locations this quarter, bringing the absolute abundance calculation to 174.
Given that the banal is up 32 percent for the year, Cramer understands that some investors may appetite to arena the register. However, if the banal gets hit, he recommended application it as a affairs opportunity. There artlessly aren't abounding abiding advance belief in the business that accept such able management. He's not accessible to carelessness address on this stock.
Those who chase Cramer consistently apperceive that he loves industries that are bedeviled by two gigantic players, accepted as duopolies. In the home advance space, Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) accept cornered the market, and afresh Cramer has witnessed a aberrant change in the industry.
For a continued time, Home Depot was advised to be the acknowledged best-of-breed company, and Lowe's has consistently been a abutting second. That ascendancy afflicted this accomplished balance division aback Lowe's wowed Wall Street.
"Suddenly Lowe's is the new aureate boy, and Home Depot is added like the whipping boy," the "Mad Money" host said.
For the aboriginal time in several quarters, Lowe's had bigger absolute same-store sales, up 7.3 percent against 6.5 percent for Home Depot. Additionally, Lowe's acquaint 40 percent balance per allotment growth, added than bifold the 19 percent advance amount from Home Depot.
Following these balance reports, Cramer's activity against Lowe's grew and pulled abroad from Home Depot. It seemed to him that about overnight, Wall Street has switched abandon to focus on Lowe's, too.
Read Added Cramer on Lowe's vs Home Depot: I'm alteration my opinion
Another aggregation that has afflicted position afresh is Palo Alto Networks, which went from actuality a bazaar angel to Wall Street punching bag. Palo Alto is the cybersecurity aggregation that Cramer has admired as accepting some of the best technology in the business.
Yet, the banal is bottomward 23 percent for the year, including a 12 percent abatement on Friday afterwards the aggregation reported. Currently the banal trades at 50 times abutting year's balance estimates, which may complete big-ticket to some, but Cramer reminded investors it's the cheapest the banal has been aback the aggregation came accessible in 2012.
Cramer still believes that the cybersecurity industry still has a lot of advance advanced of it, appropriately the banal could artlessly be in a buyable pullback. To apprentice added about the approaching of cybersecurity, Cramer batten with Palo Alto Chairman and CEO Mark McLaughlin.
"I anticipate it's a huge issue, and it's activity to abide that way for a continued time to come. I saw this morning that the Fed said they advised over 50 breaches in the aftermost four years. The administrator of Civic Intelligence not too continued ago said cybersecurity was the No. 1 affair for the United States, abounding stop," McLaughlin said.
In the Lightning Round, Cramer gave his booty on a few caller-favorite stocks:
CVS Health: "CVS is way too cheap. Some bodies were afraid about one of their deals with a provider. This is ridiculous! You're talking about Larry Merlo [CEO], one of the abundant retail merchants! It's a buy."
Unit Corporation: "No, bethink I said that in the mid $30s that oil was activity to go to $50. It hit $50; it's appear aback down. I don't accept the OPEC affair is activity to accord you that acceptable of a solution. So, I am activity to say no to that idea."
Read Added Cramer: How the OPEC affair could access oil
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