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Cramer's Mad Money Recap: Constellation Brands, Walmart

Jim Cramer has the game plan for next week's data and earnings, including retailers and tech.
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Next week's earnings all revolve around consumer spending, Jim Cramer told his Mad Money viewers Friday. But before you start buying what will likely be strong sales, consider where your favorite retail stocks have come from. Some stocks have already run big going into earnings, while others have a lot of catching up to do.

Cramer's game plan starts on Monday with two electric vehicle stocks, Lordstown Motors  (RIDE) - Get Lordstown Motors Corp. Report and Fisker  (FSR) - Get Fisker Inc. Class A Report. Lordstown has come under fire for overpromising, but Fisker has a better story to tell.

Next, on Tuesday, the retail earnings start in earnest with Walmart  (WMT) - Get Walmart Inc. Report, Home Depot  (HD) - Get Home Depot Inc. (The) Report and Macy's  (M) - Get Macy's, Inc. Report, as well as game maker Take-Two Interactive  (TTWO) - Get Take-Two Interactive Software Inc. Report. Cramer was bullish on Walmart and Home Depot but felt it was still early for Macy's. He said Take-Two isn't going away anytime soon.

Wednesday we'll hear from Lowes  (LOW) - Get Lowe's Companies Inc. Report, Target  (TGT) - Get Target Corporation Report and TJX Companies  (TJX) - Get TJX Companies Inc. (The) Report, along with Analog Devices  (ADI) - Get Analog Devices Inc. Report and Cisco Systems  (CSCO) - Get Cisco Systems Inc. Report in the tech sector. Cramer expected all of these results to be spectacular.

Then on Thursday, we'll hear from Kohl's  (KSS) - Get Kohl's Corporation Report, which has not been one of the best retail stories. Cramer was more upbeat on Ralph Lauren  (RL) - Get Ralph Lauren Corporation Report and Petco  (WOOF) - Get Petco Health and Wellness Company Inc. Report. Also reporting is Hormel Foods  (HRL) - Get Hormel Foods Corporation Report, which has run ahead of earnings, Applied Materials  (AMAT) - Get Applied Materials Inc. Report and the best earnings of the week, Palo Alto Networks  (PANW) - Get Palo Alto Networks Inc. Report, as cybersecurity remains top of mind in lieu of recent attacks.

Finally on Friday, we'll hear from Deere and Co.  (DE) - Get Deere & Company Report, which may not be fantastic if grain prices fall. Cramer was also skeptical with VF Corp  (VFC) - Get V.F. Corporation Report and Foot Locker  (FL) - Get Foot Locker Inc. Report, which has already seen big gains.

Cramer and the AAP team are looking at everything from earnings and politics 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.

Executive Decision: Constellation Brands

In his first "Executive Decision" segment, Cramer spoke with Bill Newlands, president and CEO of Constellation Brands  (STZ) - Get Constellation Brands Inc. Report and Donae Burston, founder of La Fete du Rose, one of the first companies to receive funding from Constellation's new minority-owned venture capital program.

Newlands said women and minorities in the wine and spirits business, and they hope to start changing that. Only 1% of venture funding went to black entrepreneurs, he said, a statistic that needs to change.

Burston said that many people don't drink rosé, but La Fete du Rose's mission is to make rosé more inclusive and broaden its appeal. The brand was started in 2019 and Burston plans on using the influx of capital to hire staff and increase production. He said it's very hard for small brands to break into the industry but with Constellation's help, they have a shot.

Executive Decision: Five9

For his second "Executive Decision" segment, Cramer also spoke with Rowan Trollope, CEO of Five9  (FIVN) - Get Five9 Inc. Report, the virtual call center platform.

Trollope said the market is red hot and Five9 is no longer having to convince people they need to move to the cloud, customers are just diving right in. Now is the time to rethink the customer experience, he said, and company after company is ditching the traditional phone tree for new cloud technologies.

Phone trees are just too limiting, Trollope noted, which is why the future is intelligent virtual assistants that use natural language to get you the information you need or route you where you need to go. Best of all, virtual assistants work via phone with voice or over text.

Customers are demanding better experiences, Trollope concluded, and there's a lot of growth ahead for Five9.

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.

Elliott Capital's Activism

When a talented activist investor starts asking for changes at a company, the smart thing to do is to listen. That's been the case with a number of recent deals involving Elliott Capital, which most recently took an interest in Duke Energy  (DUK) - Get Duke Energy Corporation (Holding Company) Report.

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TheStreet Recommends

Cramer said when Elliott got involved with cell tower operator Crown Castle  (CCI) - Get Crown Castle International Corp. (REIT) Report, management initially resisted. But over the next few months, they lowered their capital spending, as Elliott suggested, and made other changes that reinvigorated the stock.

The same pattern was seen at Public Storage  (PSA) - Get Public Storage Report, which followed Elliott's guidance and made some strategic acquisitions that also rewarded shareholders.

Finally, there's Elliott's stake in Twitter  (TWTR) - Get Twitter Inc. Report, which also resulted in changes to its board that sent shares up from $33 to $55 a share.

Why Cramer Recommends Staying the Course

In his No-Huddle Offense segment, Cramer reminded viewers that it's always darkest before the dawn. And when you're too pessimistic, you often miss out on big gains.

Early in the week, things looked bleak indeed. Inflation was on the rise, the consumer price index wasn't as expected and the Colonial Pipeline was shut down by a ransomware attack. But now, just days later, lumber prices have fallen 7%, the pipeline is back in operation and the flood of new IPOs that were overwhelming demand has slowed to a trickle. And that's not even counting the news that the CDC says vaccinated people can ditch their masks.

The problem with selling when things get ugly is that there's often not enough time to get back in, Cramer said. If you sold on Tuesday or Wednesday of this week, that's likely what you found Thursday and Friday.

Lightning Round

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

RADA Electronic Industries  (RADA) - Get RADA Electronic Industries Ltd. Report: "I like Raytheon Technologies  (RTX) - Get Raytheon Technologies Corporation Report with better growth and technologies."

Zynga  (ZNGA) - Get Zynga Inc. Report: "It's finally the right time to buy Zynga. That's a decent situation. "

Mastermind  (MMND) - Get Mastermind Inc Report: "I'm not sure about this one. The brain is a tough area."

Hyatt Hotels  (H) - Get Hyatt Hotels Corporation Class A Report: "It's OK, but it's not great. I loved that Airbnb  (ABNB) - Get Airbnb Inc. Report call."

Sports Entertainment Acquisition  (SEAH) - Get Sports Entertainment Acquisition Corp Class A Report: "This is an incredible situation. This stock is a buy."

Boot Barn  (BOOT) - Get Boot Barn Holdings Inc. Report: "This is an underserved market and they're doing a great job."

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