Mad Money 07/07/26 | Audio Only
Speakers
Jim Cramer
— Host, Mad Money
Summary
Jim Cramer analyzes market reactions to Samsung's quarterly miss and the resulting rotation out of data center hardware into defensive stocks, software, and hyperscalers. He sees a buying opportunity in Walmart as oil prices collapse, removing a key consumer headwind. He highlights structural improvements in Delta and United Airlines that could turn them into secular growth stocks, and interviews Applied Aerospace and Defense CEO Trip Ferguson about the company's role in restocking defense needs. The lightning round adds quick takes on Honeywell, railroads, Casey's, and others.
- Samsung's slight quarterly miss triggered a sell-off in data center hardware names and a rotation into defensive full immunity stocks, software, and Mag 7 hyperscalers.
- Walmart's 18% drop is seen as a buying opportunity because plunging oil/gas prices remove a major consumer headwind, and tariff refunds add upside.
- Delta and United Airlines have transformed into secular growth companies via capacity discipline, premium focus, and lower oil exposure, making them re-rate candidates.
- Honeywell Aerospace (post-split) is praised as a pure-play winner with strong management; Cramer wants to add more.
- CSX and Union Pacific are recommended as great long-term rail investments, with CSX having potential to reach $60.
- Applied Aerospace and Defense (AADX) is positioned to benefit from generational defense restocking after the Iran war, serving both primes and innovative space firms.
- Lightning round: buy Casey's (blowout earnings), avoid Pfizer (no growth), Honeywell a buy, and positive on rails.
- Cramer highlights the efficiency of using AI to summarize 19 SpaceX analyst reports, offering no own trade on SpaceX.
Ideas
No growth, high dividend but avoid.
Pfizer has earnings growth problems and the Seagen acquisition hasn't worked out; despite a safe 7% dividend, Cramer cannot identify where growth will come from, making him unable to be positive on the stock.
Oil drop removes headwind, buy weakness.
Walmart shares are down 18% from highs; worries about high oil prices and consumer spending have faded as oil and gasoline prices fell dramatically. The quarter wasn't bad, guidance merely reiterated, and the pullback is overdone. Additionally, tariff refunds could provide a financial benefit or fund further consumer savings, making Walmart a trade-down winner in a medium oil environment.
Airlines become secular growth, buy leaders.
Structural changes in the airline industry have made Delta and United secular growth winners rather than cyclical boom-bust stocks. The removal of ultra-low-cost carriers, pricing discipline, focus on premium offerings, credit card revenue, and reduced exposure to oil prices have improved consistency. With oil prices now falling, they can beat low forecasts and their P/E multiples could re-rate higher toward the S&P 500 average.
Honeywell Aerospace pure-play, buy winner.
Honeywell Aerospace, now run by Jim Courier after the split, is a pure-play aerospace winner with a great CEO; Cramer wants to keep buying it for the charitable trust.
Rails great long-term, buy CSX and UNP.
CSX is a great long-term investment led by Steve Angel, a proven value creator; Union Pacific is also liked. Railroads are a strong infrastructure play with potential upside (CSX could go to $60).
Defense manufacturing IPO, buy for restocking.
Applied Aerospace is an outsourced manufacturer for aerospace and defense, benefiting from generational demand after the war with Iran to restock drones, missiles, and satellites. The company serves both primes and innovative space firms, has fast decision velocity, and is positioned as an acquirer. It's a good IPO with a great story.
Blowout earnings, buy Casey's regularly.
Casey's had blowout earnings, Cramer reiterates buy, advising to accumulate shares regularly.
