Tractor Supply is larger, with 1,100 stores and plans to open 90 more next year. The company expects it can ultimately have 2,100 locations, or 85% more than today. The company has decent same-store sales growth and little overlap with the likes of Home Depot ( HD) or Lowe's ( LOW). Tractor Supply is growing at 18% a year. With shares of Ulta trading at 29 times earnings and Tractor Supply trading at 23 times earnings, Cramer said both of these stocks are expensive, which is exactly why the momentum traders will love them until the end of the year. He said these companies are a trade, not an investment, although neither have any overseas exposure but do have solid management teams.
In the "Executive Decision" segment, Cramer spoke with Ron Shaich, founder, chairman and co-CEO of Panera Bread ( PNRA), a stock that's rallied 259% since Cramer first recommended it two years ago. Shaich said the key to Panera's success has been giving customers lots of healthy food options and the transparency to make the best eating decisions. He said whether customers are looking for a low-calorie or high-protein meal or even an indulgent treat, they'll find it at Panera. Shaich also noted Panera was the first national chain to put calorie information on their menu boards. When asked about Panera's key demographic, Shaich said his company tends to trend slightly older than the fast-food market and sees more casual dining customers who are willing to pay a little more for higher-quality food. That's why Panera has been the best-performing restaurant stock over the past 10-, five- and two-year periods and is again so far this year to date. Shaich said that Panera is seeing modest cost inflation coming, but the company has adequate visibility to prepare by adjusting its prices accordingly. Cramer said Panera remains a terrific company a wise investment for health-conscious investors.
Here's what Cramer had to say about callers' stocks during the "Lightning Round": American Capital Agency ( AGNC): "There are issues with some mortgage trusts. I want you to stick with this one and Annaly Capital ( NLY). I think they can manage the yield curve. "