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my mission is simple to make you money I'm here to level the playing field for all investors there's always a b Market somewhere and I promise to help you find it m money Starts Now hey I'm Kramer welcome to Mad Money welcome to CR America other people want to make friends I'm just trying to make you some money my job is not just to entertain but also to educate and teach so call me at 1 1800 743 cmbc or tweet me at Jim Cramer we keep hearing how darn expensive the stock market is that it's way out of whack with historic valuations that it's extended well past what can be justified I can't disprove that I can't contest it on days like today where we flirt with record highs after so many updats In A Row D ultimately gaining 33 points S&P backslid 11% NASDAQ declined 9% it it seems pretty ridiculous ridiculous frankly we can still go higher with the S&P 500 trading in almost 22 times earnings Way High versus where it's been historically we don't really have a lot of grounding for being at these levels oh and given how all we hear from Washington is that the president's agenda of lower corporate taxes and repatriation of vast sums from overseas seems totally held up by dysfunction and rankor in Congress even as Republicans own both houses is there any real rigorous intellectual justification for these prices I know I'm mystified each day I'm sure you are I know that a selloff is inevitable I know we're due but something keeps happening that makes us wonder whether this Market might be cheaper than it seems companies keep beating the earnings estimates and raising their forecasts rendering the current price Journeys multiples pretty much worthless no I'm not rationalizing reasons to buy here I'm simply stating facts if companies can continue to deliver better earnings than we expect then this Market might be cheaper than it looks maybe a lot cheaper take yesterday Alone Home Depot in Walmart the largest do-it-yourself Merchant and largest Discounter reported surprisingly great quarters not good quarters great quarters both of them gave you ample opportunity to raise your estimates if you if you thought Home Depot was expensive going into the quarter you found out otherwise after you listened to the conference call I was primed for disappointment from Walmart it did the opposite it showed more profitability including online profitability much more than I expected this afternoon we heard from 3M from it CEO in gleen said he feels better about 2017 than he did a few months ago 3M Home Depo Walmart three Dow stocks that seemed expensive last week now seem too cheap too cheap on 2017 earnings and that's even after they've run a bit the exact same kind of revaluation occurred last week with Cisco CSCO kind if you looked at the previous quarter you would have been primed for some downbeat numbers Chuck Robbins the CEO himself wasn't that happy with the results but 90 days through some big big contract wins some very positive Acquisitions as well as an improved macro backdrop Cisco went from being a potentially expensive stock to being one that stands out at ridiculously cheap at 14 times next year's earnings this was a transformative quarter FR Cisco it showed far greater profitability than I would have hoped for but you had to understand that the profitability is being hidden by its metamorphosis into a software company with a hardware base we own Cisco for action plus.com and we feel ourselves telling subscribers that the Stock's way too cheap versus where the business is headed the current price can't be justified by all the good that's happening Cisco's stock is too cheap the exact same thing happened earlier this month with Visa the company's quarter uh previous it was a tad weaker than expected you might have figured we're going to get another one a repeat nope as CE Al Kelly told us when we sat down with him in San Francisco Visa saw acceleration in pretty much every venue and its business has got much better in the last few months if you thought Visa stock was expensive going into the quarter again you realized it was too cheap coming out but it's not just earnings that make it hard to sell this Market do you know what's the most expensive consumer package good stock I follow another Dow stock Proctor and Gable sells it 22 times next year's earnings that's pretty amazing for a slow growing but a midly blue chip company nevertheless Nelson pel's tryan has just taken a huge position in the stock driving the stock up I don't think it's done going higher the fact is pels is the one activist investor where if you bought the stock after he announced a new position you consistently beat the market in part because he's so good at engaging management and finding ways to cut costs pel was in another D stock that's been roaring here Dupont as it's deal with d chemical suddenly looks like it will close soon yes Dupont might seem very expensive on 2017 earnings but not if the combined company is about to split into three separate businesses as DuPont's excellent CEO Ed Breen has promised when that deal closes you go from an overvalued Dupont to an undervalued Dow Dupont how can you say that this Dow Jones components overvalued when it won't even exist as a company a few months from now and this strength is hardly restricted to Dow stocks lately Bristol Myers has had an extremely hard time with his key anti-cancer franchise updo it's been proven inferior to MKS K truda in some very important lung cancer studies the misstep has caused Bristol to lose a tremendous amount of market capitalization yet it still isn't cheap on earnings but what happens what we learned last night that Carl icon's taking a big stake in the company he's making noises about how it can be taken over this stock trades at 18 times next year's earnings yet I think these estimates are more likely to too high because of the eroding up dvo franchise I know a bunch of people shorting the stock betting the court will be weak but there's Carl in there agitating next you know maybe he catches a bid then who cares how expensive it might be kind of reminds me of how Apple was when icon left the stock thinking it' be too expensive based on among other reasons flagging sales in China what a difference a quarter mix as we saw Apple's earnings actually accelerate service stream coming into view as a curring Revenue business kind of like a raise a razor blade monel what's so important about all these situations not one of them relies on the president's agenda to go higher sure there are people who may be bidding these stocks up on the hopes of repatriation lower corporate taxes and I have no doubt that eventually something good will happen on both counts given that the president and Congress support these policies it's just that I don't see lawmakers getting anything done on the tax reform front until late this year maybe early next year in the end though every time you want to give up on a stock any stock seems like something good happens doesn't it how you want to give up Popeye's Louisiana Kitchen ahead of marra because nobody seems to care about all the great work sh CEO Cheryl bolder's done bam restaurant fans Brands pay $79 a share for this mid $60 stock craft times hey disappoints on Thursday right by not talking about an acquisition strategy we won so much next day it bids for un Li stock Source almost 10 points positives keep coming while the stock market certainly seems expensive individual companies can often turn out to be quite cheap given better than expected earnings potential takeouts possibility down the road of A Better Tax regime so let me give you the bottom line as much as you might be inclined to bet against this Market just remember that the indices contain individual companies with excellent CEOs who are bettering the situation as we speak and understand that there are real reasons for this rally reasons that aren't going away despite the remarkable run we've had since election day Pat in North Carolina Pat booah Jim booah Pat we love your show thank you U my husband and I are interested in expanding our portfolio and we're interested in Copper what's your take on Southern Copper you know I I was going to say that I like Freeport I do like Freeport but they had some problems with Indonesia Southern Copper does seem like an inexpensive stock uh and I I share with you the um some like for copper because copper seems to be breaking out of here and I think as long as a part of Diversified portfolio you're in good shape let's go to Cody and York Cody hello Kramer hey thank you for your continuous guidance oh my pleasure thank you I'm interested of uh in investing in the carel group stock though it's an asset manager that lumps hedge funds together and th subject to Market volatility I like the space because it focuses on energy infrastructure real estate and credit both sectors enhanced by Trump's policies and yet it stock has not risen much recently and it's still rather cheap especially on the account of its massive 10% yield c i I agree with you on everything but the reason why it's it's it's cheap is because people don't know what it owns but I'm I'm inclined after what happened with Fortress last week after the a better than expected uh stock market I think you're right I think Carlile is a buy CG at 16 we're going to steveen washing please Steve Bo yeah Jim my question is if we ever get a pullback in the Dow of this Market would you uh buy Herz or AAS well I I have to tell you that if we got a pullback there be so many high quality stocks like a like a Cisco or an alphabet that I want to buy or yes an Amazon that I would like to stick with companies that have improving fundamentals that actually have accelerating Revenue growth and I think that all those fit that pattern uh it's particularly because geez after coming back from Silicon Valley I feel so strong about those companies even when you want to it is so darn hard to bet against this Market when you got CEOs bettering their situations day after day there are real reasons for these record rallies people and we'll be looking for more buying opportunities together man tonight it's one of the top five players in the amusement park industry but are you tall enough to get on this Wild Ride get ready for an adventure when I speak with the CEO of Six Flags after earnings then I may have Left My Heart in San Francisco but I remembered to pack the lessons I learned tonight I'm reflecting on my time spent out west and telling you the three hot tech stocks worth owning and last year shener energy shipped out its first tanker of liquefied natural gas LG but who was missing from the momentous occasion the man who made it happen tonight I'm talking to Shar Suki about his new business venture that's competing directly with his former employer I suggest you stick with Kramer don't miss a second of Mad Money follow at Jim Kramer on Twitter have a question 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