The baton has been passed from the stay-at-home stocks to the travel and leisure names, Jim Cramer told his Mad Money viewers Tuesday. But it's still not too late to cash in on the transition, Cramer added, as many of these stocks are only just now getting started.
Tuesday we heard from a number of retailers, including Walmart (WMT) - Get Report, Home Depot (HD) - Get Report and Macy's (M) - Get Report, all of which told us that consumers are engaging in America's favorite pastime, shopping. And while Home Depot's shares dipped 1%, Cramer said that only proves that consumers are transitioning from spending on their homes to spending on everything else. What's most interesting to note, however, was Macy's, which told investors one of the hottest categories this quarter was luggage.
That's why Cramer said it's time to buy Norwegian Cruise Line Holdings (NCLH) - Get Report, which finally received approval to sail again. He also recommended Wynn Resorts (WYNN) - Get Report as a play on Las Vegas and Walt Disney (DIS) - Get Report which will profit from the reopening of movies, theme parks and cruises.
Cramer was also bullish on AMC Entertainment (AMC) - Get Report and Airbnb (ABNB) - Get Report after the company's recent secondary offering of stock. Beauty is also a hot category, with Ulta Beauty (ULTA) - Get Report making Cramer's list, along with Estee Lauder (EL) - Get Report.
As for the rest of the market, it remains hard to read, except for cybersecurity, which is red-hot. One stock that's not red hot is AT&T (T) - Get Report, which plunged 5.8% as shareholders revolted against the company's decision to slash its dividend to help pay for its Warner Media spinoff.
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Executive Decision: Raytheon Technologies
Hayes said Raytheon operates in very resilient markets and his company's $150 billion backlog gives them a lot of confidence and visibility into the future. He said given the technologies they offer and the current threat environment, they have a lot to look forward to. Hayes also said commercial air travel is also beginning to pick up, which is a great sign for late 2021 and into next year.
Raytheon has committed to return $20 billion to shareholders during the first four years after their merger is complete and Hayes added that he's very pleased with their recent Otis (OTIS) - Get Report and Carrier (CARR) - Get Report spinoffs. He said not only have those two companies created a lot of value, they've also been allowed to focus on their business, which unlocks even more value.
When asked about life after the pandemic, Hayes said they've learned that you don't have to be in the office in order to be productive, which is why they're allowing their employees to be flexible going forward. The company plans to shed 25% of its office space in the coming years as a result.
Executive Decision: Signet Jewelers
Drosos said that Signet was behind the curve when it came to online sales going into the pandemic. The company only had 5% of sales coming from online, while the industry had 15%. But through a lot of hard work, Signet now boasts over 20% online sales.
Drosos added that Signet has also significantly revamped their culture. They now operate with a purpose, making data-driven decisions and foster an environment of being agile and innovative. This has allowed Signet to respond to their customers in ways their competitors can't.
Signet is also a leader in the circular economy, making big commitments to recycling and sustainability. That was the reason behind their recent acquisition of Rocksbox, she added.
Cramer called Tuesday's weakness in Signet a gift to investors.
Executive Decision: Plug Power
For his final "Executive Decision" segment, Cramer checked in Andy Marsh, president and CEO of Plug Power (PLUG) - Get Report, the hydrogen fuel cell maker that saw its shares jump 8.3% Tuesday after the company restated its earnings.
Marsh said he takes his company's accounting irregularities very seriously and they've been working very closely with their auditors and the SEC to implement all of the recommended changes. As of Tuesday, all of their earnings have been restated with minimal changes.
When asked about their business, Marsh said the future remains bright and they continue to work with great customers like Amazon (AMZN) - Get Report and Walmart. They look forward to federal loan guarantees to help them complete two green hydrogen facilities by the end of 2022 and they already have three more locations planned.
Plug Power also continues to see strong demand from their data center business.
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Off the Charts: VIX
In the "Off The Charts" segment, Cramer checked in with colleague Marc Sebastian over the direction of markets using the CBOE Volatility Index, or the VIX, as his guide. According to Sebastian, a meaningful selloff is likely in the weeks ahead.
In a normal market, when the S&P 500 goes up, the VIX, known as the fear gauge, falls. The reverse is also true. As fear increases, the markets tend to fall. During the first three months of the year, the markets and the VIX appeared to be acting normally.
But in mid-April, the VIX bottomed but the markets remained flat. Sebastian noted that this condition is known as a volatility swell, a precursor to big market decline.
Cramer said he expects the markets to continue to climb going into Memorial Day, but after the holiday, he will be keeping a close eye on where the VIX is heading.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Tuesday evening:
Montrose Environmental (MEG) : "This is a little speculative name but I like the business."
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At the time of publication, Cramer's Action Alerts PLUS had a position in WMT, DIS.