At this point in the year, the winners keep winning, Jim Cramer told his Mad Money viewers Thursday. That's because every year in late November, hedge funds start doubling down on their biggest winners, making a handful of stocks seemingly unstoppable. Cramer said these "up" stocks have the power of momentum behind them and they'll keep working until the beginning of the year.
This year, there are 10 "up" stocks, Cramer said, starting with payment technology companies Square (SQ) - Get Report, which is up 206% for the year, and PayPal (PYPL) - Get Report. Other anointed stocks include Tesla (TSLA) - Get Report, which is being added to the S&P 500, and Amazon (AMZN) - Get Report. Cramer said Target (TGT) - Get Report makes the list going into the holiday season, as does the cord-cutting stock of Roku (ROKU) - Get Report.
The remainder of the up stocks were all technology and cloud names, including ServiceNow (NOW) - Get Report, cybersecurity company Okta (OKTA) - Get Report, RingCentral (RNG) - Get Report and messaging service provider Twilio (TWLO) - Get Report.
Cramer said all of the names have the power of the herd behind them, and you always want the herd working for you, not against you.
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Executive Decision: The Container Store
In his first "Executive Decision" segment, Cramer spoke with Melissa Reiff, president, chairman and CEO of The Container Store Group (TCS) - Get Report, the home organization store with shares that are up 145% for the year. Shares currently trade for 14 times earnings.
Reiff said it's been a challenging four years at The Container Store, but also very rewarding ones. She said they embarked on a new strategic plan and the strength you're seeing now is the culmination of that plan.
During this pandemic, the role of our homes has changed, Reiff explained. Your home is now your office, your school and your retreat, she said, which makes maximizing the space you have and making the most of it more important than ever.
Reiff was excited for their partnership with Marie Kondo. She said the Marie Kondo Collection of products will debut nationwide in January 2021 and focus on things that bring joy.
When asked about sustainability, Reiff said that sustainable products are an important focus for them. It's hard, she admitted, as plastic is both functional and affordable. But wherever possible, The Container Store is choosing sustainability.
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Executive Decision: Robinhood Markets
For his second "Executive Decision" segment, Cramer checked in with Vlad Tenev, co-founder and co-CEO of Robinhood Markets, the commission-free trading platform that's changing investing.
Tenev said that Robinhood's mission has always been to democratize finance. Many people mischaracterize younger investors as reckless day traders, but in fact, their data shows Robinhood investors to be both smart and cautious.
When asked why Robinhood investors seem to rush in when many seasoned investors are panicking and selling, Tenev said that he thinks it has to do with different outlooks. He said younger investors know they have a longer time horizon and therefore can take risks. Those nearing retirement age aren't comfortable with those levels of risk.
Tenev did not comment on rumors his company plans to come public in the first half of next year.
Executive Decision: Workday
For his final "Executive Decision" segment, Cramer checked in with Aneel Bhusri and Chano Fernandez, co-CEOs of Workday (WDAY) - Get Report, the cloud software provider with shares up 40% for the year.
Bhusri attributed their strong quarterly results to their great sales team that hasn't skipped a beat during the pandemic. He said Workday now has over 3,000 HR customers and 1,000 finance customers who are great references for their prospects.
Fernandez added that Workday had several big wins during the quarter including Fifth Third Bancorp (FITB) - Get Report, the State of Washington and Novartis (NVS) - Get Report. But more importantly, Workday was able to bring new clients online this quarter, including 1.7 million employees at Walmart (WMT) - Get Report.
Bhusri said that businesses need flexible digital solutions and that's exactly what the cloud and Workday can provide. Businesses cannot survive using rigid, legacy systems. Fernandez continued by saying that Workday offers customers a better experience for themselves and their employees.
Surprising Strength of Consumers
In his No-Huddle Offense segment, Cramer said the surprising strength of consumers has been a riddle for months. Despite the pandemic and record unemployment, consumers are still spending at the likes of Costco (COST) - Get Report, Home Depot (HD) - Get Report and Williams-Sonoma (WSM) - Get Report. But Cramer said he's figured it out.
Before the pandemic, consumers spend money on things like restaurants, movies and vacations, all things they can no longer do. That money is instead flowing into their homes and the things they need for their home office, home schooling and entertainment needs.
This new consumer is spending, but is also paying down their credit card debt and boosting their savings just in case, which is the prudent thing to do in uncertain times.
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Thursday evening:
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At the time of publication, Cramer's Action Alerts PLUS had a position in AMZN.