Mad Money 04/07/26 | Audio Only
Speakers
Jim Cramer -- Host, Mad Money
— CNBC host, Mad Money
Summary
- Expresses deep concern about the consumer, citing broad weakness across retail (Walmart down 3.4%), dollar stores (Dollar Tree down 4.2%), off-price apparel (TJX, Ross, Burlington all down 2-3%), cruise lines (Royal Caribbean, Norwegian down ~3%), and home improvement (Home Depot hitting new low).
- Interprets this stock action as signaling a weakening consumer potentially facing "stagflation," with high oil prices ($112/barrel, up 93% YTD) acting as a tax and inflationary pressure.
- Sees a silver lining: market weakness could make it easier for the Fed to cut rates, and technical analysis suggests market breadth is stabilizing after a sharp deterioration.
- Highlights Casey's General Stores (CASY) as a long-term winner, citing its S&P 500 inclusion, strong execution (11 straight earnings beats), and national growth potential, though acknowledges near-term headwinds from high gas prices and a rich valuation (~37x forward P/E).
- Presents a contrarian, long-term bullish thesis on McCormick (MKC) following its transformative deal to buy Unilever's food business, arguing the market is overly focused on the messy deal structure and missing the strategic value of acquiring premium brands (e.g., Hellmann's, Knorr) to gain scale and global exposure.
- Defends the tech sector as "the best source of opportunity," arguing it is frequently targeted by unfounded negative rumors (citing examples with Apple, Alphabet, Broadcom, CrowdStrike) that create buying opportunities for disciplined investors who understand the companies.
- During the Lightning Round, explicitly advises against Qualcomm (QCOM) in favor of ARM, against Campbell Soup (CPB) in favor of McCormick, and recommends buying more Lockheed Martin (LMT) and holding CVS.
Trade Ideas
When asked about Qualcomm (QCOM), Cramer replies, "We don't want to... why don't you just go buy ARM? I mean, I think ARM is much better than Qualcomm." He directly contrasts the two, stating ARM is "making a series of good steps" while Qualcomm is making missteps. ARM is presented as the superior investment choice in the semiconductor/IP space. Execution risk; competition in chip architecture.
Cramer explicitly says "no" to buying Qualcomm and states "Qualcomm, I think, is making a series of missteps." He directly contrasts it unfavorably with ARM. The company's strategic direction is viewed negatively, making it an unattractive investment. The company successfully corrects its perceived missteps.
Cramer states the stock is "starting to get real interesting," believes the market is "missing the whole real story" on its Unilever deal, and explicitly recommends it over Campbell Soup in the Lightning Round. The transformational acquisition of Unilever's food business (Hellmann's, Knorr) provides critical scale, global exposure, and shelf power. McCormick's management can better optimize these premium, complementary brands. The severe stock decline (~29% in March) prices in the deal's risks (leverage, dilution), creating an opportunity to bet on a strategic move that could revive the company in a hated sector. The complex, dilutive deal structure; execution and integration risk over a long timeline (closing mid-2027); regulatory scrutiny.
Cramer says, "I'm going to say that you shouldn't own Campbell." He cites its high dividend yield as a potential "chimera" and prefers McCormick. A high yield in a challenging sector is seen as a risk, not an attraction. The stock is advised against due to dividend sustainability concerns within a tough industry group. Successful brand revitalization or a sustainable dividend proving the yield is safe.
When a caller asks if they should be surprised Lockheed is plateauing despite the war, Cramer says "No... I want you to buy more. I think it will be terrific." He expresses strong confidence in CEO Jim Taiclet, describing him as "bankable." The geopolitical backdrop and leadership justify adding to or initiating a position, despite recent stock performance. Changes in defense budgeting or contract awards.
Cramer states he "stuck with Broadcom for the Charitable Trust" despite rumors Marvell won business at its expense, and then highlights that Broadcom subsequently won two deals (with Google and Anthropic), causing the stock to soar 6%. The company is a key player in custom accelerator chips and is successfully winning major business in the AI ecosystem, disproving negative whispers. The stock's performance and deal wins validate the investment thesis and demonstrate resilience against competitive rumors, supporting a bullish view. Competitive pressure in the custom chip space; cyclicality in semiconductors.
