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Cramer's Mad Money Recap: Walmart, Norwegian, Disney

Jim Cramer says interest has shifted from stay-at-home stocks to travel and leisure. Here's how to profit from the transition.
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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 Walmart Inc. Report, Home Depot  (HD) - Get Home Depot Inc. (The) Report and Macy's  (M) - Get Macy's, Inc. 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 Norwegian Cruise Line Holdings Ltd. Report, which finally received approval to sail again. He also recommended Wynn Resorts  (WYNN) - Get Wynn Resorts Limited Report as a play on Las Vegas and Walt Disney  (DIS) - Get The Walt Disney Company Report which will profit from the reopening of movies, theme parks and cruises.

Cramer was also bullish on AMC Entertainment  (AMC) - Get AMC Entertainment Holdings Inc. Class A Report and Airbnb  (ABNB) - Get Airbnb Inc. Report after the company's recent secondary offering of stock. Beauty is also a hot category, with Ulta Beauty  (ULTA) - Get Ulta Beauty Inc. Report making Cramer's list, along with Estee Lauder  (EL) - Get Estee Lauder Companies Inc. (The) 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 AT&T Inc. 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.

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: Raytheon Technologies

In his first "Executive Decision" segment, Cramer spoke with Greg Hayes, CEO of Raytheon Technologies  (RTX) - Get Raytheon Technologies Corporation Report, the aerospace and defense contractor that's firing on all cylinders.

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 Otis Worldwide Corporation Report and Carrier  (CARR) - Get Carrier Global Corporation 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

For his second "Executive Decision" segment, Cramer also spoke with Gina Drosos, CEO of Signet Jewelers  (SIG) - Get Signet Jewelers Limited Report, the jewelry retailer with shares that fell 4.4% Tuesday.

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 Plug Power Inc. Report, the hydrogen fuel cell maker that saw its shares jump 8.3% Tuesday after the company restated its earnings.

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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 Inc. 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.

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: 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.

Lightning Round

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:

Harvard Bioscience  (HBIO) - Get Harvard Bioscience Inc. Report: "They had a good quarter. That's a decent speculative stock."

Oneok  (OKE) - Get ONEOK Inc. Report: "I happen to like Oneok. I think you have a good one there."

Riot Blockchain  (RIOT) - Get Riot Blockchain Inc Report: "If you think Bitcoin is going up, you can buy this one. "

ViacomCBS  (VIACA) - Get ViacomCBS Inc. Class A Report: "People think a deal has to happen with these guys or they're going to struggle."

Montrose Environmental  (MEG) - Get Montrose Environmental Group Inc. Report: "This is a little speculative name but I like the business."

Turtle Beach  (HEAR) - Get Turtle Beach Corporation Report: "Everyone loves these guys, but I like Logitech International  (LOGI) - Get Logitech International S.A. Report."

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