The Stocks That Keep Delivering - Cramer's Mad Money (8/3/17)

by: SA Editor Michael Hopkins


What can help the market move higher?

CEO interviews with top executives from Clorox, Wyndham and Martin Marietta Materials.

And it's been 10 years since "the rant."

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday, Aug. 3.

How can this market keep doing it?

Mad Money's Jim Cramer, in his installment Thursday, looked at how Wall Street continues to deliver for investors each trading day. While some have "the right to be skeptical" of the market's run higher, there are circumstances that shouldn't be overlooked by observers.

Cramer looked at the top 10 stocks for 2017 to make his case.

Boeing (NYSE:BA): The stock is up 53% this year. "Is this outrageous?" Cramer pointed out that in the current airliner manufacturing duopoly, Boeing is "vanquishing Airbus (OTCPK:EADSF)," and is making "a ton of money" with its 787 Dreamliner.

Apple (NASDAQ:AAPL): Up 34%. Cramer said the "No. 1 consumer products company" in the world "is too cheap, even up here." The Services business will continue to deliver, he said.

Visa (NYSE:V): The stock has gained 27%. Cramer said he sees good things for Visa if it can "take China by storm."

McDonald's (NYSE:MCD): Up 27%. Worldwide growth is strong. A weaker dollar helps serve up better earnings. New technology and a simplified menu also could help move the Golden Arches higher.

Caterpillar (NYSE:CAT): Shares are up 22%. "If Caterpillar can get to where they were before the Great Recession, the stock could double."

UnitedHealth (NYSE:UNH): As healthcare policy unravels, impacting the big insurers, UnitedHealth is in a good position to weather the storm, the Mad Money host said.

Nike (NYSE:NKE): Cramer said the company "is back," and riding higher among other rising apparel companies.

Wal-Mart (NYSE:WMT): The company continues its plans to take on Amazon (NASDAQ:AMZN), leveraging its large store base to challenge the online retail giant. Cramer said he likes that.

Microsoft (NASDAQ:MSFT): The stock is up 16% for the year. "How is it possible that Microsoft hasn't moved up more?"

American Express (NYSE:AXP): Another strong riser on Wall Street. But Cramer was lukewarm on the name.

Cramer also spent time discussing Tesla (NASDAQ:TSLA), which reported results Wednesday night. While the company is "losing money hand over fist," Cramer pointed out there are willing buyers for the shares.

Bottom line for Cramer: "The market is doing amazing things," and it's not difficult to think the 10 top stocks listed by Cramer (not including Tesla) could go higher.

Clorox On Track

Clorox (NYSE:CLX), in its fiscal third quarter reporting, beat on EPS and delivered a revenue number that was in line with expectations. For investors who may fret about a toppy market, Cramer suggested owning safety stocks with good results that deliver a decent dividend, such as Clorox.

Clorox CEO Benno Dorer, a guest on Mad Money, said his company continues to deliver for shareholders thanks to a highly engaged workforce and the company's focus on the consumer.

The company also continues to push ahead with its digital strategy. Dorer said 45% of the company's marketing spend is done online. And "there's a strong return behind those investments."

It's been a year since Clorox closed its acquisition of Renew Life. Dorer said the company still has high hopes for the natural health lifestyle brand, with expanded distribution helping to grow the business.

Wyndham Breaking Up, and That's Good

One of Cramer's favorite things? When a company with stellar but disparate assets breaks itself up.

And that's what Wyndham (NYSE:WYN) is doing. The accommodations giant is separating into two separate entities - one focused on the hotel properties and the other on the timeshare business.

CEO Steve Holmes pointed out that after the split, the timeshare entity will be the largest publicly traded timeshare business for investors to consider. He also pointed out the strong results for the current Wyndham business, in which the company beat both on the top and bottom lines for the second quarter.

And the executive isn't worried about online competition. While some may think an entity like Airbnb (AIRB) is a competitive threat, Holmes said that business acts as more of a distribution model. In fact, Wyndham uses Airbnb and HomeAway for its distribution, especially during shoulder season, he said.

The Dig On Martin Marietta Materials

While the gas may have run out on the federal government ramping up spending on infrastructure projects, those projects keep moving ahead.

That's the message from Martin Marietta Materials (NYSE:MLM) CEO Ward Nye. The executive, another guest on Mad Money, told Cramer that state governments are moving ahead with their projects, and that's beneficial for the company.

States that stand out include Florida, Georgia, Texas, Iowa and Indiana, Nye said.

Martin Marietta Materials was impacted by weather during the last quarter. But Nye said construction projects the company supports "are happening."

10 Years Since the Rant

On Aug. 3, 2007, Cramer (on CNBC) delivered what's become known as "the rant" before the Great Recession hit. In that heated talk, Cramer warned of the pending challenges coming to Wall Street, with the subprime mortgage business about to take down the market.

Reflecting on the talk, Cramer said those at the Fed at the time of the pending trouble were not focused on the challenging issues surfacing within the financial sector. "It was becoming clear - the Fed had no real world contacts in the trenches of Wall Street," he said. "They didn't know the battlefield."

The good news, Cramer said, is the Fed has a "better grip on things these days." But there are new worries. For example, Cramer said he's worried about reckless lending in the subprime auto industry.

Calls Taken By Cramer

Ingersoll-Rand (NYSE:IR): "It was a good quarter, but not good enough," Cramer said. But he added the stock is "fine."

Alibaba (NYSE:BABA): "Buy," Cramer said. "That's all you need to know."

TJX Companies (NYSE:TJX): "The market doesn't like it."


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