The consumer and our economy are alive and well, Jim Cramer told his Mad Money viewers Thursday, and that's why the stock market continues to rally. Cramer said the rotation into the industrial stocks on the hopes of a trade deal has been helping to lift the market, as everything from Boeing (BA) to agriculture would benefit greatly from a return to normal trade.
But those weren't the only bright spots in Thursday's market. Cramer noted that retail continues to be strong, thanks to strong employment. Capri Holdings (CPRI) , formerly Michael Kors, rose 5% on the day, while PVH (PVH) , Lululemon Athletica (LULU) and Nike (NKE) all tacked on gains. Even the beleaguered CVS Health (CVS) was able to rise 1.1% by the close.
This strong consumer thesis is gaining in momentum thanks in part to strong earnings from Constellation Brands (STZ) , Cramer added, which proves that consumers are staying at home and playing video games, they're still going out to restaurants and buying wine and spirits.
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Executive Decision: GrubHub
For his "Executive Decision" segment, Cramer sat down with Matt Maloney, founder and CEO of GrubHub undefined , the food delivery service that's celebrating their fifth anniversary as a public company.
Maloney said GrubHub has benefited from the huge secular trend toward digital ordering. He said digital is now the preferred way to order for many people, not just millennials. Once a customer tries GrubHub once, they become a customer for life. When asked about the company's spending on advertising, Maloney said he's willing to aggressively invest in GrubHub's future because he knows the value of those lifetime customers.
Maloney also noted GrubHub's $200 million partnership with Yum Brands (YUM) as another driver for growth that's helping cement the brand in consumers' minds.
Turning to the topic of labor, Maloney acknowledged that the labor market remains tight, but noted the gig economy continues to expand and drivers love the flexibility GrubHub provides.
Finally, when asked if he had any advice for new companies getting ready to come public, Maloney said that these companies need to make better choices. He said the market won't accept sloppy, short-term decisions that stunt long-term growth.
These Are Taxing Times
With April 15, Tax Day, rapidly approaching, is it time to invest in tax preparation companies? The stock of Intuit (INTU) , makers of QuickBooks and TurboTax software, has been a longtime Cramer favorite. Shares of Intuit are up 847% over the past decade.
After a 21% decline along with the broader averages in December, shares of Intuit have been on fire this year, up 33% so far in 2019. The company delivered a 14-cents-a-share earnings beat and reaffirmed their yearly guidance.
Cramer admitted he was initially skeptical after long-tom CEO Brad Smith stepped down last year, but so far, Intuit's new management has done nothing but impress. The company is reigniting growth by providing services for those in the growing gig economy as well as continuing to provide for small and mid-size businesses.
That said, trading at 35 times earnings, shares of Intuit are becoming expensive. Cramer said he'd only be a buyer on a sizable pullback.
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Executive Decision: Constellation Brands
In his second "Executive Decision" segment, Cramer also sat down with Bill Newlands, the new president and CEO of Constellation Brands (STZ) , the wine and spirits maker that saw its shares pop 6.5% after the company reported a 12-cents-a-share earnings beat with a 2% rise in quarterly revenues.
Newlands said the high end of the market continues to be strong and Constellation is the leader in the high end. That's how the company was able to deliver just shy of 9% volume growth for the year.
When asked about the company's cash flow, Newlands explained that Constellation is a cash generating business and they plan to return $4.5 billion to shareholders over the next three years. The company is also picking up $1.7 billion from the sale of some of its lower-end brands.
Turning to the topics of trade, Newlands said they have ways to mitigate a border shutdown with Mexico, but he certainly hopes cooler header prevail between our two nations. You can't make Mexican beer outside of Mexico, he added.
Finally, when asked about his company's investment in Canopy Growth (CGC) , Newlands said Canopy is becoming the leader in what's becoming a big business and the company has an excellent team in place to help it grow.
Cramer and the AAP team are looking at opportunities for growth in their portfolio. 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.
Nothing Wrong With the Cloud
In his "No-Huddle Offense" segment, Cramer explained what's going on with the cloud kings, a group that got pummeled Thursday, with Service Now (NOW) , Salesforce.com (CRM) , Splunk (SPLK) and VMWare (VMW) all closing lower.
Cramer said he's talked with every one of these companies and business is still fabulous, but with so many hot IPOs hitting the market, money managers are quick to sell these high-growth names to raise cash. He said the declines will likely continue Friday, but by late afternoon, investors can begin buying, as there's simply nothing wrong with the cloud.
Cramer was bearish on JD.com (JD) .
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At the time of publication, Cramer's Action Alerts PLUS had a position in CVS.