It's not too late to late to buy the banks, even after today's monster run, Jim Cramer told his Mad Money viewers Wednesday. The banks are back, and they're leading the entire market higher.
In short, the banks are making more money than ever, Cramer said, and they're doing it with more technology and fewer employees. That's how shares of Goldman Sachs (GS) - Get Report could rocket 9.5% on sharply better-than-expected earnings, and why Bank of America (BAC) - Get Report followed suit with a 7.1% run.
In the new world, everyone with a smart phone is a potential customer for these banks, and they're taking full advantage.
The fact is, shares of Goldman should never have been that low in the first place, Cramer said. The company's Malaysian issues will not have a major impact on the firm's earnings and with nearly 61% of its revenues now stemming from fees, it acts more like a regular bank than an investment firm.
Cramer said he continues to look at tangible book value when evaluating the banks, and they're still trading at ridiculous low levels. With tons of mergers and acquisitions on the horizon, there will be plenty of business for the big banks, and since the Federal Reserve is no longer threatening an inverted yield curve, there's even more to like about the banks.
Read: Jack Bogle, dead at age 89. "Jack was the ultimate titan," said Cramer. "He democratized investing and gave everyone a chance at investing in the progress of America. We are all indebted to him for his selfless championing of a low-cost way for people to save and he will be missed. What a gent he was," Cramer added.
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Prognosis for GlaxoSmithKline
Cramer said Glaxo shares have been essentially dead money for years, as the company chose to focus on its slow-but-steady consumer products division instead of the riskier drug and pharma businesses. But now that's all changing, as Glaxo plans to spin off its over-the-counter division and use those proceeds to reinvest in its pipeline of new drugs.
Glaxo had the most impressive story at last week's JPMorgan Chase Health Care conference, Cramer said, and he was impressed by everything the company had to say. Even Glaxo's vaccine business looks promising, he added, yet the company still trades for just 13 times earnings with a 5% dividend yield.
Over on Real Money, Cramer says that without some solid earnings beats, we may be approaching rally-sinking quicksand. Get more of his insights with a free trial subscription to Real Money.
Shopping Around for Opportunities in Retail
Retail is becoming an increasingly complicated story. That's why Cramer took a look at three popular retail stocks to see which, if any, are worth betting on.
Cramer first looked at Lululemon Athletica (LULU) - Get Report , a stock that was pummeled from $164 to a low near $112 a share during last quarter's selloff. He said that when the macro economic worries vaporized after the holidays, Lulu was among the first to rebound, a move that was only amplified on Monday when the company forecast same-store sales growth in the mid-teens. Lulu remains a growth story, Cramer said, and should be bought.
Then there's Yeti (YETI) - Get Report , the camping equipment maker that came public in October, only to see its shares plunge to $12.41 at their lows. Cramer said he's still a believer in Yeti and shares are a steal at just 15 times earnings given the company's growth rate.
Finally, Cramer looked at Crocs (CROX) - Get Report , a stock that's making a comeback and a product that's still beloved by teens. Unlike Lulu and Yeti, which trade at low multiples, Crocs trades at a lofty 24 times earnings. Cramer said shares may still rise from current levels, but he couldn't recommend it at this valuation.
Executive Decision: New Relic
Cirne explained that New Relic collects millions of data points every second from its users to ensure their applications are performing as expected and their users are getting the intended experience. Their clients now include CNBC's new mobile app, which is rapidly gaining in popularity and usage.
Among the company's biggest clients is Epic Games, makers of Fortnite, currently the world's most popular video game. Cirne said that Fortnite cannot afford a sub-standard experience, which is new New Relic is monitoring the game continuously, at a massive scale, to ensure everything is working exactly as it should.
When asked about competition, Cirne said while others many offer pieces of what New Relic does, no company has a complete application monitoring experience on a single platform.
In the Lightning Round, Cramer was bullish on Twitter (TWTR) - Get Report , Deutsche Bank (DB) - Get Report , AT&T (T) - Get Report , TJX Companies (TJX) - Get Report , Burlington Stores (BURL) - Get Report , Ollie's Bargain Outlet (OLLI) - Get Report and Cara Therapeutics (CARA) - Get Report .
Thank the Fed for Merger Action
In his "No-Huddle Offense" segment, Cramer said merger mania is just getting started on Wall Street, and we can all thank the Federal Reserve.
Cramer said when the Fed crushed the markets last quarter, they made stocks so cheap that opportunistic buyers simply couldn't say no. That's how mega deals like BristolMyers Squibb (BMY) - Get Report buying Celgene (CELG) - Get Report and Eli Lilly (LLY) - Get Report snapping up Loxo Oncology (LOXO) - Get Report get done. Just today we saw First Data (FDC) - Get Report catch a bid and now shares trade for 21% more than they did yesterday.
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At the time of publication, Cramer's Action Alerts PLUS had a position in GS.