A booming economy produces more winners than losers, Jim Cramer reminded his Mad Money viewers Friday, and after today's employment numbers, we again see that things are booming.
Cramer said that unlike fleeting fears over Italy or tariffs, the job growth numbers can set the stage for the next several weeks of investing.
That's why Cramer's game plan for next week started off with Palo Alto Networks (PANW) , the cybersecurity company that's likely to keep on sailing, given strong long-term themes.
Next, on Tuesday, Cramer will be looking for positive news from Ollie's Bargain Outlet (OLLI) , the discount retailer that can't add stores fast enough to meet consumer demand.
The markets should receive more bullish news from Broadcom (AVGO) on Thursday, as this company's aggressive buy-back program is snapping up 10% of its outstanding shares.
Finally, Cramer said, he'll be watch for the German industrial production numbers on Friday. Why? He said because if the number is weak, then the Germans may be forced to negotiate with President Trump over trade, a move that the markets would view positively.
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When Good News Is Good News
What does a perfect economy look like? Cramer told viewers that it looks a lot like this one, with fabulous job growth and little to no inflation.
For years now, investors have been told that "good news is bad news," because if the economy heats up too quickly, the Federal Reserve will aggressively raise interest rates and the party will come to an abrupt end. But that's not the case with this economy, Cramer noted, as we're not seeing inflation.
There are a lot of things to like about our current situation, Cramer added, and many sectors are participating, including manufacturing, machinery and transportation. The only weak sector has been healthcare. That's great news on many fronts, as more people can find jobs, there's more consumer spending, college students can crawl out from under their debts and even the Federal deficit can be reduced.
A strong economy is why Cramer said he's not too worried about tariffs or trade wars. Our economy is strong enough to withstand retaliation, he said, and it gives us more leverage over our trading partners.
When times are good, you need to stick with what's working, Cramer told viewers, and that includes cloud computing, where we just saw another round of spectacular earnings. Companies like Adobe Systems (ADBE) are up 43% for the year, while ServiceNow (NOW) , Splunk (SPLK) and Workday (WDAY) are up 39%, 37% and 34% respectively.
But there is one smaller cloud play that Cramer said might not be a "cloud king," but is certainly on it's way to becoming a cloud prince, and that's Coupa Software (COUP) , up 21% in just the past three months.
Cramer said there's a lot to like about Coupa, as it's a small company with lots of growth and potential, but there's also one big downside, valuation. Coupa doesn't have any earnings, and trades at 13 times this year's sales or 11 times next year's. That's a stretch for even a hot stock like Coupa.
Cramer cautioned that the company reports next week and has run up going into earnings, which makes it worrisome in the short term. It's a lot easier for this stock to go lower, he cautioned, even if he likes the long-term story.
Cramer Does His Homework
In his "Homework" segment, Cramer followed up on a few stocks that had stumped him during earlier shows.
He said that Casa Systems (CASA) is an innovative company in the 5G wireless space, but the stock has been on a roller coaster after the company did a secondary offering. Cramer said he likes the story but has no catalyst to buy in the short term.
Cramer said that Health Equity (HQY) is a leader in managing health savings accounts online, but this stock is also too pricey, trading at 72 times earnings.
Finally, Cramer looked at software developer, EPAM Systems (EPAM) , a stock which he said is very much worth owning.
Am I Diversified?
In the "Am I Diversified" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.
Cramer said this portfolio needed to swap Amgen for an industrial like United Technologies (UTX) in order to be diversified.
Cramer said he's not a fan of Abbvie or Annaly, but with minor changes this portfolio is properly diversified.
In the Lightning Round, Cramer was bullish on Copart (CPRT) , Mazor Robotics (MZOR) , WestRock (WRK) , Yext (YEXT) , STMicroelectronics (STM) , Cognizant Technology (CTSH) , Accenture (ACN) and General Electric (GE) .
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