Some sectors never go out of style, Jim Cramer told his Mad Money viewers Tuesday. Today, it looked like the senior growth stocks were once again back in style, Cramer said, and that reminded him of the early 1980s, when the bull market was only just beginning.
Cramer said Kimberly-Clark (KMB) - Get Report has been struggling for years, but now the company has roared back to life, posting 5% organic sales growth, led by gains in emerging markets. Coca-Cola (KO) - Get Report has also returned from the abyss, Cramer said, with 6% organic growth that led shares to rally 6% by the close.
In both cases, these companies benefited from higher sales and stronger demand from emerging markets, coupled with lower costs here at home.
But Cramer cautioned that there simply isn't enough money to send the entire market higher, so today's rally in the consumer stocks came as investors were rotating out of Adobe Systems (ADBE) - Get Report , Salesforce.com (CRM) - Get Report and other cloud names.
The consumer stocks will continue to do well in an environment where interest rate cuts make their buybacks and dividends more attractive. These stocks also benefit from any progress on tariffs and trade.
Cramer and the AAP team have previews of key portfolio names reporting this week, including Caterpillar (CAT) - Get Report , Facebook, (FB) - Get Report and others. 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.
Daymond John on Entrepreneurship
In a special interview, Cramer sat down with Shark Tank co-host Daymond John, to discuss entrepreneurship, branding and small business in America.
John said the best brands are still those that educate people about what they stand for. The mantra that "you are the brand" still resonates for many entrepreneurs and startups.
When asked about starting a business or a brand, John's biggest piece of advice was not to quit your day job. He said when he started, he was working at Red Lobster and renting every room in his house to pay the mortgage. He was able to get his business off the ground while still having a stable income and health insurance. In a world where services like Shopify (SHOP) - Get Report let anyone start an online store from their cell phone, there's no reason to take unnecessary risks.
John also reminded viewers that most "overnight success stories" take an average of six or seven years to truly become successful. Even unicorns like Beyond Meat (BYND) - Get Report got their starts more than 10 years ago.
Finally, when asked about his best investment on Shark Tank, John said Bombas Socks remains his favorite, as the company has seen incredible growth and given away over 20 million pairs of socks to those in need.
Executive Decision: Hasbro
For his "Executive Decision" segment, Cramer spoke with Brian Goldner, chairman and CEO of Hasbro (HAS) - Get Report , the toymaker that has finally put the Toys R Us liquidation behind it and deliver a 28-cents-a-share earnings beat that sent shares soaring 10%.
Goldner painted a bullish picture for Hasbro, saying the company continues to see strength in many of its brands, including Magic The Gathering, Transformers and others. They have announcements coming later this year for Nerf and several Walt Disney Co. (DIS) - Get Report products for the Star Wars franchise and the "Frozen 2" movie.
Hasbro remains committed to returning capital to shareholders, Goldner said, and has bought back $1 billion worth of stock as well as raised its dividend for 15 of the past 16 years.
When asked about China, Goldner said China remains a great place to make quality toys, but Hasbro continues to diversify its manufacturing around the globe, including here in the U.S. as well as in India.
Stock up on Snacks
Both are well-run companies, Cramer said, but they do differ in a few key areas. Mondelez, for example, derives most of its revenue from overseas, which lets it benefit from a weaker U.S. dollar. Meanwhile, Hershey has superior revenue growth, gross margins and earnings.
Cramer said that while he likes Hershey the company better, the stocks tell a different story. Both stocks pay around a 2% dividend, but Mondelez is less expensive at 20 times earnings, compared to Hershey at 24 times earnings. For that reason, Cramer said he'd be a buyer of Mondelez for right now and would wait for a pullback before snapping up any shares of Hershey.
Declare Your Investing Independence
In his "No-Huddle Offense" segment, Cramer warned viewers about following the investing pundits and gurus they see on TV. On Jan. 22, billionaire Ray Dalio warned that higher tax rates were coming if the Democrats win the next election and the economy was headed toward recession. Dalio argued that we're already late in the economic cycle and central banks had little ability to cut interest rates further.
But January turned out to be a great time to buy, not sell, stocks and Dalio's fund fell 4.9% in the beginning of 2019.
Cramer reminded viewers that the priorities of billionaires don't necessarily coincide with your priorities and investors must not blindly follow what they see or hear on TV.
On Real Money, Cramer says investors need a declaration of independence from anyone who has a broad and sweeping rap against stocks. Get more of his insights with a free trial subscription to Real Money.
In the Lightning Round, Cramer was bullish on eBay (EBAY) - Get Report , Cadence Systems (CDNS) - Get Report , CRISPR Therapeutics (CRSP) - Get Report , Pfizer (PFE) - Get Report , Moderna (MRNA) - Get Report , Tandem Diabetes Care (TNDM) - Get Report , DexCom (DXCM) - Get Report and Abbott Laboratories (ABT) - Get Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in CAT, FB, CRM, DIS, SHOP, ABT.