The stock market is a tug-of-war between the virus and the vaccine, and also between Biden versus Trump, Jim Cramer told his Mad Money viewers Friday. Hopefully, during next week’s holiday-shortened week, we will get some clarity on both.
Cramer’s game plan for next week starts on Monday, when he hopes to get some clarity on both Trump’s waning efforts to overturn the election results and on the distribution plans for the coming vaccines. As we saw with Workday (WDAY) – Get Report Friday, even a great company can plunge 9.2% on uncertainty.
In his first “Executive Decision” segment, Cramer checked in with Anders Gustafsson, CEO of Zebra Technologies (ZBRA) – Get Report, one of the companies helping to prepare millions of doses vaccines for distribution around the globe.
Gustafsson explained that Zebra is no longer just a barcode company. Their technology is already playing a vital part in the fight against COVID-19, including helping to track test samples around the globe.
Zebra is gearing up for the coming global vaccine distribution with innovative products like labels that change color based on temperature exposure. He said this is crucial for COVID vaccines, which must be kept at very low temperatures in order to work. Using Zebra’s labels, the entire logistics chain can tell at a glance whether vials, boxes and pallets are properly cared for as they move around the world.
Beyond labeling, Zebra is also actively promoting technologies to help with contact tracing and even social distancing. Zebra sensors can provide employees with realtime feedback when they get closer than six feet from others.
Executive Decision II
For his second “Executive Decision” segment, Cramer spoke with Laura Alber, president and CEO of Williams-Sonoma (WSM) – Get Report, the home goods retailer. The company just posted a monster dollar-a-share earnings beat, yet the stock still trade for less that 15 times earnings.
Alber said that all of the investments and initiatives they’ve put into place are finally coming into fruition. When she began at the company, 40% of sales came from their catalog. Today, 70% of sales stem from digital. They continue to invest heavily into e-commerce and digital applications to make buying for your home easier than ever.
Your home is your biggest asset, Alber said, and people are investing in their homes to make them more comfortable. Thanks to covid, our homes are for school, work and entertainment and Williams-Sonoma can help in every area.
Alber noted that Williams-Sonoma also has a thriving commercial business as well, helping to outfit restaurants, cafes and retailers with high-quality and stylish furnishings.
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For his final “Executive Decision” segment, Cramer checked in Mick Farrell, CEO of ResMed (RMD) – Get Report, the medical device maker that’s up 17% over just the past month and 36% for the year.
ResMed made a huge pivot earlier in the year to aid in the fight against COVID-19. The company increased its ventilator production by 350%, Farrell said, making and distributing over 150,000 units around the globe. While production continues, ResMed is now slowly returning to its core markets combating sleep apnea, COPD and asthma.
Farrell said the pandemic has helped raise awareness for the importance of respiratory health. It has also shown the world the importance of digital solutions that can provide care outside of traditional hospital settings.
ResMed has helped over 100 million patients so far and the company aims for 250 million by 2025.
No Huddle Offense
In his “No Huddle Offense” segment, Cramer said if you invest while ignoring politics, you risk getting blindsided, which is why he offered up some insights for what might happen if Trump is successful in overturning the election results.
First, he said the automakers have been on fire, especially those focused on renewable energy. But if Trump remains president, those stocks will take a hit. Second is China. The market is betting on a thawing in U.S.-China relations. If that doesn’t happen, look for Apple (AAPL) – Get Report and others to decline.
The oil stocks have done terribly under Trump, Cramer continued, because more drilling leads to lower crude prices. That would continue under four more years of Trump. Finally, Cramer said the restaurants would actually be more enticing under Trump, as he’s unlikely to force them to limit their operations no matter how bad the pandemic gets.
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In an upbeat segment, here’s what Cramer had to say about some of the stocks that callers offered up during the Mad Money Lightning Round Friday evening: Cramer was bullish on Norwegian Cruise Line (NCLH) – Get Report, Bristol-Myers Squibb (BMY) – Get Report, Ncino (NCNO) – Get Report, Raytheon Technologies (RTX) – Get Report and Boeing (BA) – Get Report.