Cramer’s Mad Money Recap: Cleveland-Cliffs, Tractor Supply

Many people think this market is about as good as it gets. But Jim Cramer told his Mad Money viewers Monday that the recent action on Wall Street tells him a different story. It tells him there’s no peak in sight. 

It’s been decades since the U.S. has seen a strong economic recovery. But after the world was put on hold in 2020, there’s so much pent-up demand, most investors can’t even fathom how good things are about to get. We haven’t even begun to see the pickup in travel and entertainment, Cramer said, and that’s just the start.

There’s a lot more to our recovery than just the cyclical stocks. Construction is also booming, which helped Otis  (OTIS) – Get Report shares to rocket 7%. We also saw a strong rally in American Express  (AXP) – Get Report, up 4.1%, just as Cramer predicted last week, now that travel is resuming. Then there’s AMC Entertainment  (AMC) – Get Report, which rallied 13.1%.

The market even warmed up to Skyworks Solutions  (SWKS) – Get Report, sending shares up 4.5% as investors realized what Cramer noted last week, the company’s acquisition is a game changer.

All of this good news came just on Monday, and there’s a lot more to come.

Cramer and the AAP team are looking at everything from earnings and politics to the Federal Reserve. 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.

Executive Decision: Cleveland-Cliffs

In his first “Executive Decision” segment, Cramer spoke with Lorenzo Goncalves, chairman and CEO of steel maker Cleveland-Cliffs  (CLF) – Get Report.

Goncalves said that one of the most important decisions he made after becoming CEO was to bring back the company’s original name, Cleveland-Cliffs. He said it was an important step in beginning the company’s transformation from makers of iron ore pellets to completed steel products.

The post-COVID world will be an unforgiving one, Goncalves continued. Between supply chain disruptions, port congestion, environmental impacts and political concerns, manufacturing is returning to the U.S. from overseas, and Cleveland-Cliffs will be there with the iron ore and steel they need, he said.

When asked about the company’s success, Goncalves said employees are the most important thing. Finding and keeping the best people is what sets Cleveland-Cliffs apart and why its many recent acquisitions have all been successful.

Executive Decision: Tractor Supply Co.

For his second “Executive Decision” segment, Cramer also spoke with Hal Lawton, president and CEO of Tractor Supply  (TSCO) – Get Report, the agriculture-focused retailer with shares that have tripled from their 2020 lows. Shares of Tractor Supply currently trade for 26 times earnings.

Lawton admitted that Tractor Supply may not be a household name around New York or Los Angeles, but his company has over 1,900 locations across the nation with 30% same-store sales growth and over 20 million loyalty members.

When asked about growth, Lawton said Tractor Supply is seeing strength in  core customers but also in a whole new generation of younger customers who are embracing a rural, self-reliant lifestyle.

Tractor Supply is not a category retailer, but a lifestyle retailer. They sell everything from tractors and fencing to pet food and animal feed. For those interested in raising their own chickens, Tractor Supply has chicken coups, feed, heat lamps and more. The company sells more than 11 million live birds a year.

Cramer called Tractor Supply one of the most important retailers in the country.

Executive Decision: Hartford Financial

For his final “Executive Decision” segment, Cramer checked in Chris Swift, chairman and CEO of Hartford Financial Services Group  (HIG) – Get Report, the insurer that rejected multiple takeover offers from rival Chubb  (CB) – Get Report.

Swift said Hartford rejected multiple offers because it had confidence in the  business and in its plans for the future. As the economic recovery begins, you can’t help but be optimistic, he said, and Hartford is in the sweet spot of small commercial insurance, where the growth will be among the biggest.

Hartford is investing into its business while also cutting costs and rewarding shareholders, Swift said. It’s in the middle of a $625 million savings program and has announced a $2.5 billion share repurchase program.

On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.

Hate to Burst Your Bubble

In his “No Huddle Offense” segment, Cramer sounded off against all those money managers claiming the stock market has entered bubble territory. He said there is no giant bubble in stocks, only three smaller bubbles including cryptocurrencies, SPACs and some high-flying stocks from last year.

While Bitcoin and NFTs are getting a lot of attention these days, Cramer said, they still account for only a tiny percentage of all trading. Yet they often sour money managers on the entire market. As for SPACs, Cramer’s been railing against this never-ending trove of lesser-quality merchandise for months.

When it comes to overvalued stocks however, Cramer said it’s time for money managers to stop complaining and put their money where their mouths are. If they really see overvalued stocks, short them. Otherwise, stop complaining, he said.

Lightning Round

Here’s what Cramer had to say about some of the stocks that callers offered up during the “Mad Money Lightning Round” Monday evening:

Suncor Energy  (SU) – Get Report: “I think this one is tough. It worries me. I like Chevron  (CVX) – Get Report.”

MicroVision  (MVIS) – Get Report: “That’s another wild trader. I think it’s a good one but you need to be careful.”

U.S. Bancorp  (USB) – Get Report: “It’s at a 52-week high with a decent yield. I think it’s fine.”

ContextLogic  (WISH) – Get Report: “I think this one can have a run. 44% of the shares are currently sold short.”

Veru  (VERU) – Get Report: “This has come down a lot and is a crazy trader, but I’m a believer in the company.”

Natera  (NTRA) – Get Report: “I’m a believer in diagnostics. I’ll back this one.”

Flowers Foods  (FLO) – Get Report: “I’ve always had problems with this one. This is a cut-throat business.”

Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.

To watch replays of Cramer’s video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer’s free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer’s Action Alerts PLUS had no position in the stocks mentioned.