It's not too late to make a bet on stocks that benefit from the reopening of our economy, Jim Cramer told his Mad Money viewers Monday. The reopening train is leaving the station with or without you, Cramer added, which makes now the perfect time to buy.
Cramer's top reopening stock was Walt Disney Co. (DIS) - Get Report, which posted a strong quarter on the heels of their Disney+ streaming service. Imagine what the company can do when movies, theme parks and cruises come back into style.
Other travel and leisure stocks included Marriott Worldwide (MAR) - Get Report, Wynn Resorts (WYNN) - Get Report and Penn National Gaming (PENN) - Get Report. Cramer was also a fan of Southwest Airlines (LUV) - Get Report and Royal Caribbean Cruises (RCL) - Get Report. Boeing Co. (BA) - Get Report was another logical reopening play, he said.
Outside of travel, investors should expect a pickup in spending, which bodes well for Visa (V) - Get Report, Mastercard (MA) - Get Report and American Express (AXP) - Get Report. Cramer also liked Estee Lauder (EL) - Get Report and mall REIT Simon Property Group (SPG) - Get Report. Finally, in manufacturing, Cramer recommended Caterpillar (CAT) - Get Report and said it may finally be time for Nucor (NUE) - Get Report to shine.
You're no longer early to these trades, Cramer admitted, but you're not late either. These stocks may underperform until the economy reopens, but when it does, it may be too late to get in. Growth, Cramer concluded, never really goes out of style.
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Executive Decision: Palo Alto Networks
In his first "Executive Decision" segment of the week, Cramer spoke with Nikesh Arora, chairman and CEO of Palo Alto Networks (PANW) - Get Report, the cybersecurity firm that just posted another strong quarter.
Arora said that Palo Alto Networks saw 22% growth in this quarter, but billings in the quarter were affected by the pandemic. As he explained on the company's conference call, some of Palo Alto's customers are doing great, while others are not. Extended payment agreements made billings this quarter a little confusing, he said. The company reaffirmed their guidance for the year.
When asked about the SolarWinds cyberattack, Arora said the repercussions are still being felt. Palo Alto Networks offered free assessments to companies and so far has identified over 500 that were affected by the hack.
Turning to macro trends, Arora said Palo Alto's focus started with the cloud, then moved to multi-cloud and ultimately to hybrid-cloud security. Their services today are suited for workloads across multiple clouds and for employees that are working from home and the office.
Executive Decision: Ely Lilly
Ricks first spoke of Lilly's progress with Donanemab, a treatment for Alzheimer's disease that the company has been working on for the past 30 years. He said Donanemab could be a game changer. In Phase 2 trials, it has proven to quickly eliminate plaque in the brain that triggers the disease. The one-time treatment can remove plaque that builds up over 20 years and was effective in helping early-stage Alzheimer's patients achieve better outcomes.
In addition to Phase 3 testing, Lilly is also studying whether Donanemab could also be used as a one-time preventative measure for everyone, even before symptoms start.
Ricks was also upbeat on the outlook for COVID-19. He said Lilly's COVID therapies are working against most variants of the disease and overall, vaccines are winning the war. He predicted that by April, the U.S. will have more doses of vaccines than demand.
Executive Decision: ON Semiconductor
El-Khoury said semiconductors are in strong demand and every one of the company's end markets are seeing strength. Automotive chips, in particular, are in demand, he said, with environmental chips not far behind.
When asked about the growing shortage in semiconductors, El-Khoury explained that it isn't the volume as much as the velocity of the increase in demand. He said the industry can meet demand in another one to two quarters, but they weren't prepared for the sudden jump in demand.
El-Khoury noted that ON Semi is investing heavily in North American capacity, but the company will continue to have a global footprint. They are working hard to consolidate their operations, he said, but will retain their foundries.
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Off the Charts
In the Off The Charts segment, Cramer checked in with colleague Larry Williams over the direction of the markets.
Williams first looked at his Dow Jones Industrial Average annual cycle forecast, noting that the markets aren't likely to peak until early May. Using another oscillator, Williams determined that the markets also follow 240-day cycles, which also indicate buying will continue through April, then pick up again in July.
Williams next noted how oil has been a leading indicator for stocks. Pushing the price of oil forward by three years also indicated the current rally is not over yet.
Finally, Williams pushed oil prices forward by 500 days, which has proven to be a reliable indicator of where the airline stocks are headed. This correlation showed that the airlines are likely to rally as well through April.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, MA.