We spend a lot of time talking about the exciting companies, but it's often easier to make money with the boring ones, Jim Cramer told his Mad Money viewers Thursday. So while the markets were focused on today's IPO of Robinhood (HOOD) and its 22 million clients, Cramer said he wants to celebrate companies like Carrier Global (CARR) .
Carrier is not a sexy stock. The company trades at just six times earnings, not 25 times sales, like Robinhood. Carrier is not revolutionizing investing, it's simply a heating and air-conditioning company. So why then is Cramer excited?
Sometimes it pays to bet on the tortoise and not the hare, Cramer explained. You can make money by being solid, and that's exactly what Carrier provided after being spun off when United Technologies merged with Raytheon (RTX) a few years ago.
Over on Real Money, Cramer says the biggest thing that happened today wasn't about Robinhood or the mega-cap tech companies, it was about the names we all depend on, like Carrier Global. Get the most from Cramer's investing ideas and market strategies.
Carrier Global shares rose 4.60% on Thursday to close at $53.94. Robinhood stock lost 8.37% in regular trade to end at %34.82.
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Watch Out for the 'Hot Takes'
We all know that news travels fast. And in the heart of earnings season, news travels so fast, news outlets and analysts just can't even keep up. That's why the media often shoots first and doesn't even bother to ask questions later. They simply don't have the time to provide thoughtful analysis.
But there is a way to know if the initial "hot takes" on earnings are correct and if your favorite stocks are likely to head higher after they report. The secret is to look for analyst upgrades.
Cramer said shares of both PayPal and Facebook (FB) fell on their initial earnings releases, but after receiving aggressive analyst upgrades and target boosts, they're now ready to resume marching higher. Both companies are playing the "UPOD" game of under-promising and over-delivering, Cramer explained. But once analysts raised their price targets, that provided the trampoline their shares needed to bounce from their early losses.
By tomorrow midday, the sellers will have finished selling these stocks, Cramer said, and that's the time to start buying.
Know Your IPO
In his "Know Your IPO" segment, Cramer checked in with Vlad Tenev, chairman and CEO of Robinhood, the commission-free trading platform that came public Thursday with much fanfare.
Tenev said that Robinhood's mission has always been the democratization of finance, whether that be with commission-free trading of stocks, fractional shares, cryptocurrencies or access to the IPO markets. Robinhood remains focused on providing its clients with the very best products and education around.
When asked about the IPO's opening-day losses, Tenev said he's building a long-term business and isn't worried about the first-day performance. Robinhood continues to provide value to customers and shareholders alike.
Tenev added that he's used to having doubters and naysayers, but despite all of the criticism, Robinhood is still having a very strong year and isn't resting on its laurels. The company has a lot more work to do.
Executive Decision: Agco
In his first "Executive Decision" segment, Cramer spoke with Eric Hansotia, chairman and CEO of Agco, the agricultural equipment provider which just reported strong earnings and raised its full-year forecasts. Shares closed up 1% on the news.
Hansotia said there are two factors at work for Agco. The first is that crop prices are up, resulting in good profitability for farmers. The second is pent-up demand from the pandemic. In lean times, farmers hold off on new purchases and that's exactly what happened last year.
Hansotia added that while the shape of the agriculture cycle is pretty predictable, what isn't predictable is the timing of when things happen. That's why Agco always said demand for new equipment would return, the company just didn't know exactly when that uptick would begin.
Agco is building precision planting equipment that their customers love, Hansotia said. Demand is growing for sustainable farming around the globe, even in China, where that country has seen several years of volatility from both a swine flu and then COVID-19.
Executive Decision: DexCom
For his final "Executive Decision" segment, Cramer spoke with Kevin Sayer, chairman, president and CEO of DexCom (DXCM) , the glucose monitoring company.
Sayer said that DexCom continues to be focused on providing the best products available for patients, caregivers and physicians. Each iteration of their platform is very different from its predecessor.
Sayer added that every diabetic patient can do better with monitoring, and DexCom is building the evidence to support those claims every day. One thing the company is looking to change is how diabetes is measured. He said the A1C metric provides an average of insulin levels, but the "time in range" metrics that DexCom can provide offers far more by showing what percentage of the day a patient's insulin levels are inside recommended ranges.
DexCom is also working to improve access to their systems overseas.
Here's what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Thursday evening:
Maxar Technologies (MAXR) : "This is the right place to be. I like this one."
ON Semiconductor (ON) : "The semiconductor shortage is weighing on them, so you need to be patient."
AppLovin (APP) : "This is a great spec, but the market doesn't like specs. When they do, this one will come back."
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At the time of publication, Cramer's Action Alerts PLUS had a position in FB, AMD.