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Boom Town: Cramer's 'Mad Money' Recap (Monday 2/22/21)

Jim Cramer says, 'Don't miss the train to Boom Town.' He's got his best stock picks for a strong, post-COVID reopening.
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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 Walt Disney Company 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 Marriott International, Inc. Class A Report, Wynn Resorts  (WYNN) - Get Wynn Resorts, Limited Report and Penn National Gaming  (PENN) - Get Penn National Gaming, Inc. Report. Cramer was also a fan of Southwest Airlines  (LUV) - Get Southwest Airlines Co. Report and Royal Caribbean Cruises  (RCL) - Get Royal Caribbean Group Report. Boeing Co.  (BA) - Get Boeing Company 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 Visa Inc. Class A Report, Mastercard  (MA) - Get Mastercard Incorporated Class A Report and American Express  (AXP) - Get American Express Company Report. Cramer also liked Estee Lauder  (EL) - Get Estee Lauder Companies Inc. Class A Report and mall REIT Simon Property Group  (SPG) - Get Simon Property Group, Inc. Report. Finally, in manufacturing, Cramer recommended Caterpillar  (CAT) - Get Caterpillar Inc. Report and said it may finally be time for Nucor  (NUE) - Get Nucor Corporation 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.

Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.

Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.

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 Palo Alto Networks, Inc. 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

For his second "Executive Decision" segment, Cramer also spoke with David Ricks, chairman and CEO of Eli Lilly  (LLY) - Get Eli Lilly and Company Report the pharmaceutical giant with shares up 18% so far this year.

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

For his final "Executive Decision" segment, Cramer checked in Hussame El-Khoury, president and CEO of ON Semiconductor  (ON) - Get ON Semiconductor Corporation Report, the chipmaker with shares up 250% since its March 2020 lows.

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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.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

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.

Lightning Round

Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Monday evening:

Ambarella  (AMBA) - Get Ambarella, Inc. Report: "This has made a great comeback. I think you're OK in it."

Dollar General  (DG) - Get Dollar General Corporation Report: "I think it's a buy at these levels. Stimulus checks are coming and that's a fabulous opportunity."

Quidel  (QDEL) - Get Quidel Corporation Report: "I'm going to say no. This was not a good quarter for them."

XPO Logistics  (XPO) - Get XPO Logistics, Inc. Report: "You want to buy this one. The last quarter was terrific."

Boise Cascade  (BCC) - Get Boise Cascade Co. Report: "I think this one is terrific. I like Trex  (TREX) - Get Trex Company, Inc. Report and Azek Company  (AZEK)  and this one as well."

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At the time of publication, Cramer's Action Alerts PLUS had a position in DIS, MA.