Game Plan For The Week - Cramer's Mad Money (2/26/18)

Stocks discussed on the in-depth session of Jim Cramer"s Mad Money TV Program, Monday, February 26.

Cramer is back with Mad Money. "Things have gotten a little crazy around here. That"s why I think what we need, more than anything else at the moment, is to get right back in sync immediately," he said. He discussed the game plan for the week, which is heavy on retail earnings.

Tuesday

Macy"s (NYSE:M), Workday (NYSE:WDAY), EOG Resources (NYSE:EOG), AutoZone (NYSE:AZO) and Square (NYSE:SQ) will report earnings.

Macy"s and AutoZone have been wild and volatile. Cramer was bullish on both. Workday is a fantastic SaaS company. "I suspect a fantastic quarter that often is misunderstood, giving you your umpteenth undeserved chance to buy on weakness," he said.

He suggesting staying clear of oil stocks, although EOG Resources is a good stock. Lastly, JPMorgan (NYSE:JPM) will have its analyst meeting, and Cramer expects to hear good things.

The market will also keep a close eye on the new Fed chairman Jerome Powell.

Wednesday

Lowe"s (NYSE:LOW), TJX Companies (NYSE:TJX) and Salesforce (NYSE:CRM) will report earnings, and Honeywell (NYSE:HON) will hold its analyst meeting.

Cramer was bullish on Lowe"s and its rival Home Depot (NYSE:HD). He expects Salesforce to have a great quarter as always. TJX can be a hit or a miss, while Honeywell"s analyst meeting will give insight into the company staying one or splitting.

Thursday

Best Buy (NYSE:BBY), Kohl"s (NYSE:KSS), Anheuser-Busch Inbev (NYSE:BUD), VMware (NYSE:VMW) and Nordstrom (NYSE:JWN) will report earnings.

Cramer feels Best Buy is undervalued and it will tell a good story. He is bullish on Kohl"s and Nordstrom. "Either way, I expect decent numbers given how well their kind of apparel and footwear has been selling. If the stock stays this low versus its peers, and it was down today, I bet it does take itself private," he said about Nordstrom.

VMware has the best technology, and it is one of Cramer"s favorite stocks. "I would buy the stock. Let"s do this: buy some before and buy some after," he added. Cramer did not know what to expect of Anheuser Busch"s business, as its rivals are doing well. "This could be the last truly weak quarter from BUD, so a trade may be in the offing," he said.

Friday

Foot Locker (NYSE:FL) and J.C. Penney (NYSE:JCP) will report earnings.

Cramer thinks Foot Locker will continue its climb with current earnings. "Is it my favorite? No. But many analysts turned negative at the bottom, and they"re still scrambling and itching to go positive up here," he said. J.C. Penney"s earnings, on the other hand, can be cause for concern, as other retailers are outdoing it.

Market Action

Cramer spoke about the market action that happened in the last two weeks of the Winter Olympics. The negativity had increased volatility in the market due to leveraged products that were not designed to take high volatility in the first place. Cramer said the market has returned to reality, and Trump"s agenda of tax cuts and deregulation is working.

He also pointed to the S&P Short Range Oscillator. "We need something that"s solid as bedrock, which is why I subscribe to a product called the S&P Short Range Oscillator - I"ve been following it closely every single day of my life since back in 1987. It"s the single best indicator of whether the market"s overbought or oversold, meaning it tells you when we"ve gone too far too fast in one direction," said Cramer. The oscillator gave a reading of -10 2 weeks ago, which is the lowest in the last three years.

This reading meant the market was heavily oversold. "In other words, the oscillator is the single best way to detect capitulation. When the weak hands finally surrender, beaten-down stocks can take off like a rocket. The extreme negativity from all the overselling is really why this market bottomed. In the midst of the panic, it was the only signal that got you to buy," he added.

Stocks of cyclical companies are working, as their success is tied to economic growth. "Companies like Caterpillar (NYSE:CAT) and Boeing (NYSE:BA) benefit from two shortages: a shortage of their products thanks to high demand, and a shortage of their stocks thanks to their own endless buybacks," Cramer noted. He suggested getting out of dividend stocks in favor of these growth names.

While the quarter"s earnings have been strong, the threat of levered ETF products is still looming, and Cramer suggested staying away from them.

General Mills (NYSE:GIS)

The stock of General Mills was punished when the news of it acquiring pet food maker Blue Buffalo (NASDAQ:BUFF) was out.

Cramer said it is not uncommon for an acquirer stock to go down in the troubled food space, but he thinks the decline was not justified. This deal is a brilliant move, he opines, and it will make the pullback a buying opportunity for General Mills.

"General Mills is buying into a thesis that I"ve been pushing for years, and that"s the humanization of pets," Cramer explained. More people in the US are willing to pay up for pet food and treat pets like family. The spending on pets grew to $66B in 2016. "With the Blue Buffalo deal, General Mills will become the No. 1 player in the wholesome natural pet food category overnight," he added.

While analysts consider the deal to be expensive, Cramer thinks the company will use its powerful supply chain, marketing and research to make the deal additive to earnings by 2020. After many weak quarters, this deal could just be the boost General Mills is looking for. As only 3% of pets eat Blue Buffalo food, there is massive room for it to grow under General Mills" leadership.

"General Mills has been unjustly punished at this point for its delicious Blue Buffalo acquisition, and with shares at $51 sporting a 3.8% yield, buy here. The stock has become simply too cheap to ignore," concluded Cramer.

Chairman interview - NovoCure (NASDAQ:NVCR)

NovoCure reported 77% Y/Y revenue growth in the last quarter. Cramer interviewed Chairman Bill Doyle to know what lies ahead for the company. The stock is 10% from its highs in January.

The chairman spoke about the positive clinical data which shows that 5-year survival rates have gone up to 30% from single digits few years ago. The patients" quality of life has also improved.

He said that the company"s growth will come from domestic expansion, international expansion and its patients using NovoCure therapy as primary treatment. It is still in the early days of brain cancer therapy, and is exploring the technology with other forms of cancers, like lung, pancreatic and ovarian cancers. "With the existing business, there are multiple avenues for continued growth," added Doyle.

Viewer calls taken by Cramer

Allegheny Technologies (NYSE:ATI): While the rise in Boeing orders will impact the company positively, Cramer suggested buying Boeing instead for a play on aerospace.

Apple Hospitality REIT (NYSE:APLE): REITs are under pressure, and Cramer doesn"t want to call a bottom.

Starbucks (NASDAQ:SBUX): Cramer doesn"t expect the company to make any acquisitions soon, and it is doing well in China. Cramer said he would not sell it for sure.

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