We're starting to see some early signs that social distancing may be reining in the spread of Covid-19, Jim Cramer told his Mad Money viewers Wednesday. But while many investors are betting on a return to normalcy, Cramer cautioned that our new normal might not look anything like the old normal. That's why he said many stocks that have been rallying, shouldn't be.
The retail landscape will look very different in the new normal, Cramer explained. He said many retailers will close their underperforming locations, making the big winners Walmart (WMT) , Costco (COST) and Target (TGT) . Amazon (AMZN) , of course, will continue to dominate in a world where shopping is a health hazard. And discount retailers, like TJX Companies (TJX) and Ollie's Bargain Outlet (OLLI) , will be able to buy a ton of distressed merchandise on the cheap. Beyond these names, there isn't a lot to like in retail.
Other winners in the new normal will be wearable device makers, like Apple (AAPL) , which help us monitor our health as well as enable our phones to process contactless payments.
Cramer also said Walt Disney (DIS) will be a player in the new normal, although with fewer visitors to their theme parks. He also recommended restaurants like WingStop (WING) , Domino's Pizza (DPZ) and Darden Restaurants (DRI) . Finally, Cramer said he likes Estee Lauder (EL) , as everyone will still want to be looking their best when they're finally allowed to go back outside.
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Executive Decision: Salesforce
Business is the most powerful force for social change, Cramer told viewers. That's why he checked in with Marc Benioff, CEO of Salesforce.com (CRM) , to learn more about Benioff's efforts to combat COVID-19.
Benioff said it's incumbent on businesses to use their relationships and resources for the greater good and to alleviate suffering. That's how he was able to work with Alibaba BABA and others to deliver over 50 million pieces of personal protective equipment to the San Francisco Bay Area, where Salesforce is headquartered. He said work is still ongoing and additional shipments of supplies are on the way.
Benioff added that in addition to the biological challenge, we're also facing an economic one, which is why he's taken a 90-day pledge not to lay off any employees until we can see what the recovery will look like. He encouraged all CEOs to do the same.
Benioff touted Tableau, the analytics company acquired by Salesforce in 2019, as invaluable during this crisis. He said many dashboards and reports disseminating information about COVID-19 are powered by Tableau, which is an instantly scalable solution for providing analytics where and when they're needed most.
Finally, Benioff noted that Salesforce is still hiring, as are many companies in the Salesforce ecosystem. He encouraged anyone interested in retraining for the digital economy to visit Salesforce's Trailhead.com for more information.
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Executive Decision: Perrigo
For his "Executive Decision" segment, Cramer spoke with Murray Kessler, president and CEO of Perrigo (PRGO) , the private-label food maker. Perrigo pre-announced 11% organic growth yesterday.
Kessler explained that demand is strong for Perrigo's products, especially for items such as their generic acetaminophen. He said while private label always does well during recessions and times of uncertainty, Perrigo is not just about food, it's evolving into a self-care company which fits in perfectly with a world where people want to visit the doctor's office less.
When asked about drugs being made overseas, and whether that trend will be changing, Kessler noted that Perrigo sells 75% of its medicines in the U.S. and it makes the majority of them here as well. As concerns over medication supplies grows, it's likely that more drugs will be made in the U.S.
Turning to Perrigo's response to COVID-19, Kessler said of their 11,000 employees, only essential personnel are allowed into their factories right now and all precautions are being taken. He said even he would not be allowed inside.
Executive Decision: Biohaven Pharmaceuticals
In his second "Executive Decision" segment, Cramer checked in with Dr. Vlad Coric, CEO of Biohaven Pharmaceuticals (BHVN) , which recently received approval for Nurtec, its oral treatment for migraines. Cramer is a spokesman for the American Migraine Foundation as well as a migraine sufferer.
Coric said that not only has Nurtec received approval for the treatment of migraines, they are also getting positive results from their prevention studies as well. Patients are reporting relief in as little as an hour with Nurtec, and the effects are lasting for up to two days.
Cramer noted that Nurtec is proving to be a much-needed supplement for monthly injections for migraines, which often see patients suffer breakthrough headaches during the week before their next shot.
Coric said that Biohaven is aware what COVID-19 is making seeing your doctor more difficult, which is why they're offering telemedicine appointments with doctors to help patients get easy access to the drug. They are also extending a $0 copay program through the end of 2020.
Who's Open for Business
In his "No-Huddle Offense" segment, Cramer said with China coming back online, there are lots of opportunities being created. He was bullish on both UPS undefined and FedEx (FDX) , as well as Apple, Broadcom (AVGO) , Skyworks Solutions (SWKS) and Nvidia (NVDA) .
Cramer recommended Caterpillar (CAT) thanks to a surge in orders from the Chinese stimulus plan, and he also liked Nike (NKE) as a second-half China story as well. Finally, he said that Costco will be a real winner in China as well.
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:
LPL Financial (LPLA) : "I think people need to talk to professionals and that's a good one."
Yelp (YELP) : "The stock has been acting like restaurants are never coming back and that's wrong."
Vertex Pharmaceuticals (VRTX) : "I bless buying it. Their drug is a breakthrough and this is a good company."
U.S. Concrete (USCR) : "I don't think we're going to see an infrastructure bill. I'd go with Caterpillar CAT."
Bristol-Myers Squibb (BMY) : "This should be at $70 a share. They do well in a slowing economy."
Nordic American Tanker (NAT) : "Be careful. Oil is still coming down."
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At the time of publication, Cramer's Action Alerts PLUS had a position in COST, AMZN, TJX, AAPL, DIS, CRM, NVDA.