Skip to main content

Fuel for the Bull: Cramer's 'Mad Money' Recap (Wednesday 1/15/20)

Jim Cramer accentuates the positive news in earnings, healthcare technology and the China trade deal.
  • Author:
  • Publish date:

Wednesday was only Day 1 of the trade-deal rally, Jim Cramer told his Mad Money viewers. That's why any company that could benefit from more access to the Chinese markets should be bought into any weakness.

Cramer said today's trade deal is more far-reaching than most people realize. It finally gives U.S. companies access to the Chinese markets without needed partnerships that steal intellectual property. 

That's great news for a host of companies, including FedEx  (FDX) , Tellurian  (TELL)  and American manufacturers like Emerson Electric  (EMR) , Honeywell  (HON)  and United Technologies  (UTX)

Cramer was also bullish on UnitedHealth Group  (UNH) , a stock that shot up 2.8% today but never should have been so cheap in the first place. 

Not all moves are sustainable, however. Cramer cautioned that parabolic moves, like those seen in Tesla  (TSLA)  and Beyond Meat  (BYND) , aren't sustainable, and these stocks were right to decline 3.6% and 8.5% respectively Wednesday. Outside of these individual names, Cramer said he expects the trade-deal rally to continue into Thursday and beyond.

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

Personalize It

The term personalization has become a lot more than a buzzword, Cramer told viewers, it has become a necessity. 

In the field of medicine, personalized treatments for cancer and other diseases are helping the immune system target and fight bad cells without harming the healthy ones. Meanwhile, personalized genetics can now hep determine which types of cancer a person may be susceptible to. 

Personalization is changing the face of retail, with CVS Health  (CVS)  adding clinics to its drugstores so customers will always be pointed in the right direction. Then there are companies like Stitch Fix  (SFIX)  that are doing away with stores altogether and providing personalized wardrobes right to the front door. 

We even see personalization in finance, with Bank of America's  (BAC)  mobile app providing customers with the information and services they need, while rivals like Wells Fargo  (WFC) , aren't spending enough, and fall behind.

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.

Executive Decision: Stitch Fix

Speaking of Stitch Fix, Cramer sat down with Katrina Lake, CEO of Stitch Fix, in his "Executive Decision" segment, to learn more about the company's astounding growth.

Lake said that Stitch Fix now has over three million members and is using technology and data science to solve the paradox of choice that consumers so often face with apparel. With Stitch Fix, clothes are chosen and shipped right to the customer and they keep only the ones they like. This model has proven to be more efficient with a smaller carbon footprint than traditional retail stores, which must be stocked with goods, heated, cooled and staffed. 

Stitch Fix is a profitable business and Lake noted that they reinvest in innovation for their future. They never need to worry about downsizing stores or building omni-channel strategies, they can focus solely on giving their customers better choices. 

When asked how to value her company, which doesn't have traditional same-store sales metrics like other retailers, Lake said revenue-per-customer is a good metric to measure their success over time. Stitch Fix has seen six consecutive quarters of revenue-per-customer growth. 

Executive Decision: XPO Logistics

In his second "Executive Decision" segment, Cramer sat down with Brad Jacobs, chairman and CEO of XPO Logistics  (XPO) , the transportation and logistics provider with shares up 15.6% after the company announced it is exploring strategic alternatives. 

Scroll to Continue

TheStreet Recommends

Read: XPO Logistics Surges as It Reviews Strategic Options 

Jacobs explained that despite being the seventh-best performing stock in the Fortune 500 over the past decade, the market still gives XPO a multiple of just eight to nine times earnings. He said each of their four business units would get a multiple much higher than that, which is why they're exploring options to spin off and sell each unit individually. 

Jacobs said the markets will determine the value of their parts, but with a leadership position in each category and with consumer, retail and e-commerce all growing worldwide, there should be a strong demand for everything XPO has to offer. 

Executive Decision: Moderna

For his final "Executive Decision" segment, Cramer sat down with Stephane Bancel, CEO of Moderna  (MRNA) , the biotech pioneering messenger RNA technology to reprogram the body's own cells to fight disease. 

Bancel explained that Moderna is building a broad platform that will create a new class of medicines. The company is entering phase three trials for a vaccine to treat Cytomegaovirus, a disease that affects pregnant women with devastating effects on the baby. Bancel said every woman of child bearing age should get vaccinated for the disease once the treatment becomes available. 

When asked about vaccines, Bancel said that the most effective way to treat disease is before you get it. That's why vaccines make so much sense. But unfortunately, there are still countless diseases that don't have vaccines available. Moderna is looking to change that. Once their platform is proven, they plan on introducing 20 drugs over the next four years.

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 Wednesday evening:

Pfizer  (PFE) : "May I suggest Bristol-Myers Squibb  (BMY)  or AbbVie  (ABBV) , both of which are superior." 

NextEra Energy  (NEE) : "This is a growth company pretending to be a utility."

Axon Enterprise  (AAXN) : "I feel pretty good about this one. It's a buy." 

BP undefined: "Don't buy this one. Fossil fuels are falling out of favor." 

Viking Therapeutics  (VKTX) : "This one is down for the year. I'm sticking with Bristol-Myers Squibb  (BMY) ." 

Royal Caribbean Cruises  (RCL) : "I like what they're doing. They're a good one." 

Microchip Technology  (MCHP) : "They already pre-announce a good quarter. There's not a lot of upside there."

Introducing TheStreet Courses: Financial titans Jim Cramer and Robert Powell are bringing their market savvy and investing strategies to you. Learn how to create tax-efficient income, avoid top mistakes, reduce risk and more. With our courses, you will have the tools and knowledge needed to achieve your financial goals. Learn more about TheStreet Courses on investing and personal finance here.

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in CVS, UNH, BMY.