If someone if going to disrupt your industry, it might as well be you, Jim Cramer told his Mad Money viewers Monday, as he celebrated companies that are willing to put their current businesses at risk in order to own their future.
Cramer was, of course, referring to Monday's news that PepsiCo (PEP) - Get Report is paying $3.2 billion to acquire SodaStream (SODA) - Get Report . It wasn't too long ago that SodaStream ran an advertising campaign shaming those who buy bottled water, the kind that PepsiCo sells. But Cramer said PepsiCo did the right thing and the move will ultimately be positive for the company.
SodaStream began its life as an at-home soda maker, but soon shifted, along with consumer tastes, to fizzy water. Millennials love their fizzy water, Cramer said, for its pure ingredients and eco-friendly stance toward packaging.
PepsiCo's move follows Constellation Brands (STZ) - Get Report , which last week added another $4 billion to its stake in Canopy Growth (CGC) - Get Report , taking the company's position from 10% to 39%. While investors panned the deal, which is partially be paid for by suspending Constellation's dividend, Cramer applauded the move. He said Canopy is among the best cannabis growers and distributors, which gives Constellation the leading position in this up-and-coming market.
These are exactly the kind of deals that may hurt in the short-term but pay off big over the long-term, Cramer concluded. He also called out CVS Health (CVS) - Get Report , with its bid for Aetna (AET) , as another of these bold, but prudent moves to reinvent one's business.
Nordstrom Deserves Respect
Viewers of Mad Money will remember that Cramer last recommended Nordstrom back in February, near $50 a share. And while shares initially bounced on rumors of a take-private deal, by April and May they spent much of their time below $50. When the company reported in May, Nordstrom delivered just a 0.6% increase in same-store sales that once again sent investors heading for the exits.
But this quarter, the company finally figured things out, delivering an 11-cents-a-share earnings beat with a 4% increase in same-store sales, the company's strongest in over two years. Nordstrom management also raised full-year guidance and indicated that its ecommerce operations are gaining momentum.
With earning this strong, Cramer said a wave of analyst upgrades will have to follow, especially with shares trading at just 16 times earnings. Cramer said even up here, Nordstrom remains among the cheapest retailers he follows.
Cramer and the AAP team talk are raising their price target on Nordstrom. 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.
Which Way, Walmart?
What should investors do with the stock of Walmart (WMT) - Get Report after last week's 10% surge? Cramer said the company's turnaround plans continue to deliver and he's not backing away from his earlier recommendation.
Shares of Walmart initially declined in 2015, when then-new CEO Doug McMillan first outlined increased spending to pay workers more and invest heavily in its online operations. Shares were hit further this year, after weak earnings and talk of tariffs began to take hold. But last week's earnings were stellar, Cramer said, including the seven-cents-a-share earnings beat and monster 4.6% increase in same-store sales.
Cramer reiterated that Walmart is the only company with the scale needed to compete with Amazon (AMZN) - Get Report , yet shares trade for just 19.6 times earnings, far less than Costco (COST) - Get Report at 29 times earnings. If Walmart were to get a valuation it deserves, say 24 times earnings, shares would be trading above $120 a share.
Over on Real Money, Cramer says a lot of money is spent doing quarterly financial reports. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Apptio
Gupta said that every company is now a technology company, and tech operations are no longer just a backroom function. CIO's need transparency and insight into their technology spending and their transition to the cloud and that's exactly what Apptio's platform provides.
Apptio serves companies of all sizes and in all industries, Gupta explained, including Mastercard (MA) - Get Report , ExxonMobil (XOM) - Get Report and JPMorgan Chase (JPM) - Get Report . The company is also active in the government sector, where most tech spending still revolves around spreadsheets.
Cramer said Apptio is another great cloud computing company.
No-Huddle Offense: Comebacks
In his "No Huddle Offense" segment, Cramer said this market has seen some incredible comebacks in stocks that were totally written off by investors. Take Kimberly-Clark (KMB) - Get Report , the consumer packaged goods maker that has been soaring after the company put in place price increases to combat commodity inflation.
Then there's Simon Property Group (SPG) - Get Report , the retail REIT which has the ailing JCPenney (JCP) - Get Report as an anchor at over 50% of its properties. Simon is just off its 52-week highs as investors are beginning to think about how much money the company could make with more lucrative tenants.
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At the time of publication, Cramer's Action Alerts PLUS had a position in JWN, PEP, AMZN, JPM.