Mad Money

Jim Cramer explains why these market themes are working right now

Key Points
  • CNBC's Jim Cramer on Monday explained why he thinks certain sectors can do well on the market right now and pinpointed a few stocks.
  • He named companies in areas like health insurance and cybersecurity.
Market transition over the past few weeks has been unfathomable, says Jim Cramer
VIDEO2:0802:08
Market transition over the past few weeks has been unfathomable, says Jim Cramer

CNBC's Jim Cramer on Monday explained why he thinks certain sectors can do well in this turbulent market and pinpointed a few stocks he's looking at, including some in cybersecurity and health insurance.

"I see several things the winners have in common," Cramer said. "They don't have a lot of competition. They're largely domestic. They don't need a strong economy. You can't tariff them out of existence. They have scale, and most have fat margins."

Cramer named UnitedHealth, saying he thinks the health insurance giant largely has freedom under the Trump administration. He also said he likes Centene — unless Congress passes substantial Medicaid cuts, because running those plans is a significant part of the company's business, he added. According to Cramer, drug distributors are low risk and able to make consistent profits, and he picked out Cencora, McKesson and Cardinal Health.

The defense sector seems to be working at the moment, especially as global tensions heat up, Cramer noted, recommending L3Harris and Palantir. He also pointed to stocks related to infrastructure, like Marietta Materials, WM and Vulcan Materials. These domestically-oriented companies are set to do well as money from former President Joe Biden's building programs is being put to work, Cramer continued. Cybersecurity companies are some of the more reliable stocks related to tech, he suggested, naming Palo Alto Networks, CrowdStrike, Okta, and Rubrik as ones to own.

Cramer picked Walmart and Costco in the retail sector, saying the former's recent quarter demonstrated its scale and reach, while consumers are drawn to the latter's low price point. He also mentioned a few one-off winners, including police equipment and taser maker Axon, as well as utility Con Ed. Cramer also said he believes gold is back in favor because crypto "has quietly lost its luster," naming Agnico Eagle.

"You've just been given the most boring portfolio in the world," he said. "It's exactly what you need with a president who generates too many headlines and a confusing economy that's most definitely headed in the wrong direction, at least for now."

Market transition over the past few weeks has been unfathomable, says Jim Cramer
VIDEO2:0802:08
Market transition over the past few weeks has been unfathomable, says Jim Cramer

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