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Cramer's Mad Money Recap: Home Depot, Ford, Disney

Selloffs are opportunities for investors who do their homework and focus on stocks that are doing exceptionally well, says Jim Cramer.
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It's day two of the market selloff, and Jim Cramer told his Mad Money viewers that this pullback won't let you make a ton of money immediately. But, if you're patient, he said, it will set you up to make a lot of money over the long term.

On days like Wednesday, it seems like investors gravitate to the extremes. Everything is either great, or it's terrible. But while this logic might seem simple, Cramer called it another example of lazy thinking. Yesterday, Home Depot  (HD) - Get Home Depot, Inc. (HD) Report told us things are slowing, but that didn't stop rival Lowes  (LOW) - Get Lowe's Companies, Inc. (LOW) Report from surging 9.5% today on exceptional results. And just because automakers are limited by semiconductor shortages, that hasn't stopped Ford Motor  (F) - Get Ford Motor Company Report from making vehicles can't wait to buy when they're available.

Over on Real Money, Cramer writes: "Things are never this black-and-white. We don't have a disaster scenario or a heaven-sent bull run." But this selloff will provide a great basis that sets investors up for tremendous long-term performance. Read more of his trading ideas and investment strategies.

So rather than taking your cues from aggregated macro data, Cramer said it's far better to do the homework and hone in on individual companies like these that are doing exceptionally well. Don't look at the retail sales numbers in aggregate, look at stocks like TJX Companies  (TJX) - Get TJX Companies Inc Report, which is soaring.

Investors looking for an easy way to play both sides of the market should just buy Walt Disney  (DIS) - Get Walt Disney Company Report, Cramer concluded. Disney makes money with Disney+ if the pandemic rages on, and it makes money with movies, theme parks and cruise lines when we all finally get vaccinated.

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Executive Decision: Cummins

In his first "Executive Decision" segment of the night, Cramer spoke with Tom Linebarger, chairman and CEO of Cummins  (CMI) - Get Cummins Inc. Report, one of the leaders in clean hydrogen fuels.

Linebarger said that technology and innovation is at the core of what Cummins does. The company already has a long history of engine building, so when the technology was available to make clean hydrogen possible, it was a natural evolution for the company. Beyond engines, Cummins has made several acquisitions for everything from fuel cells to storage, allowing them to offer complete stationary and mobile systems.

Linebarger also explained that while hydrogen is already prevalent in many industries, all of the hydrogen in use today comes from natural gas. What's different with green hydrogen is that it's made from water and renewable energy, making it far cleaner than what's produced today.

The U.S. needs to invest a lot more, Linebarger added. There is much to do, he said, and we need to put a price on carbon if we're ever going to get the investments we need in non-carbon technologies.

Get more trading strategies and investing insights from the contributors on Real Money.

Executive Decision: Lowe's

For his second "Executive Decision" segment, Cramer also spoke with Marvin Ellison, chairman and CEO of Lowe's Cos., to learn more about the company's exceptional quarter and how it has been able to upstage Home Depot.

Ellison explained that Lowe's has split its efforts between serving professional customers and DIY customers. The stores remain clean and full of decor and live goods, but there's also a focus on serving professionals.

Each Lowe's store also is localized, Ellison added. They've hired a team of field merchandisers that know their local markets and keep their stores stocked with the items that matter most.

Lowe's has also revamped its delivery services. Instead of stocking every store with every SKU, Ellison said each market now has a single distribution center where orders are most often delivered the very next day. The new market delivery system improves sales and profitability with less inventory and offers better delivery times and customer experiences. Market delivery is rolling out to all markets and will soon offer lawn mowers, gas grills and even patio furniture.

Ellison touted Lowe's profit sharing program, which provided $91 million worth of bonuses to hourly employees this quarter. Lowe's is also actively helping minorities pitch new products and services to the company. 

Executive Decision: Agilent Technologies

For his final "Executive Decision" segment, Cramer checked in with Michael McMullen, president and CEO of Agilent Technologies  (A) - Get Agilent Technologies, Inc. Report, the diagnostics and testing company with shares up 129% over the past two years.

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McMullen attributed Agilent's success to its focus on employees and customers. And the pandemic began, Agilent made a job security pledge to all  employees. There were no layoffs and no salary cuts at Agilent. Next, the company focused on customers and all of the challenges the pandemic brought from around the globe.

McMullen noted that while Agilent's COVID-related business is strong, it's more important to note the 26% growth in core, non-COVID related businesses. Agilent has grown $1 billion of new business since the pandemic began.

Finally, McMullen was bullish on Agilent's "build-and-buy" strategy approach to growth. He said the recent acquisition of Resolution Biosciences is just the latest deal for the company. He said with the rise of precision medicine comes a need for precision testing to see if these many new therapies will work for you. Those are exactly the kinds of tests that Resolution provides and they fit perfectly into the Agilent portfolio.

A Stealth Bull Market

In his "No Huddle Offense" segment, Cramer said there's a stealth bull market afoot and it's easy to miss. You might think Wednesday's rally in Pfizer  (PFE) - Get Pfizer Inc. Report is just about COVID booster shots, but you'd be wrong.

There's a multi-year bull market happening in the drug stocks, Cramer explained, and it's affecting a lot more than just Pfizer. Shares of Johnson & Johnson  (JNJ) - Get Johnson & Johnson (JNJ) Report are also running higher, and so too are the stocks of Bristol-Myers Squibb  (BMY) - Get Bristol-Myers Squibb Company Report and others.

If you look at a chart of Eli Lilly  (LLY) - Get Eli Lilly and Company (LLY) Report, you'll see the future is now when it comes to the company's latest therapies for Alzheimer's disease. The same is true for Regeneron  (REGN) - Get Regeneron Pharmaceuticals, Inc. Report, which is at new 52-week highs.

All of this looks a lot like the drug stock rally of the 1990s, Cramer concluded, and you don't want to miss it.

Lightning Round

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

Intuitive Surgical  (ISRG) - Get Intuitive Surgical, Inc. (ISRG) Report: "I like Intuitive Surgical very much. I say buy, buy, buy. "

Skyworks Solutions  (SWKS) - Get Skyworks Solutions, Inc. Report: "I like the acquisition. They are smart guys. I'm a buyer."

Canopy Growth  (CGC) - Get Canopy Growth Corporation Report: "I'd rather own Constellation Brands  (STZ) - Get Constellation Brands, Inc. Class A Report, which has a stake in Canopy."

Hyliion HYLN: "So many people were pumping that one up but I don't think they have anything special. There are too many of these companies."

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At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.