- CNBC's Jim Cramer explains why analysts can’t resist the digital payment space.
- The "Mad Money" host also hears from the CEOs of Domino's Pizza and Nucor.
- In the lightning round, Cramer floats a positive theory for Lockheed Martin's shares.
With over assets — but staying in the — both and stocks are now primed for profit, CNBC's Jim Cramer said Thursday.
"I think these two stocks aren’t up nearly enough on today's news and they’ll be rewarded over the coming months with a total revaluation that sends them a lot higher," the "Mad Money" host said.
But what this battle has taught Cramer is arguably more important than the battle itself: that "beauty is in the eye of the investor."
"Their love can seem irrational at times, but to portfolio managers, loving these stocks means never having to say sorry to your investors," he said.
And the most beloved group in the market right now?
"Payments. Yes, financial payments. Oh, it’s not just loved, it’s worshiped" as the secular shift from paper to plastic to digital payments has woken analysts and investors up to stocks like Visa and Mastercard, Cramer said.
With little interest rate risk, massive addressable markets and no risky brick-and-mortar exposure, the "Mad Money" host said that the long-term journeys higher for these stocks, as well as digital plays like PayPal and Square, has just begun.
new initiative of like beaches or parks curbs the need for industry innovations like , Domino's new CEO, Richard Allison, told CNBC on Thursday.
The initiative, called Domino's Hotspots, lets customers order food to places without traditional addresses. Domino's franchisees have now defined some 200,000 total hotspots in their communities since the push was announced earlier this year.
"Through this fortressing process, we’re bringing these delivery areas tighter and closer together," Allison told Cramer in an exclusive interview. "What that’s doing is getting us closer to the customer, so as soon as that pizza comes out of the oven, we want it in a car, with a driver and on its way to the customer."
While Domino's, which reported a slight on Thursday, is planning a more concerted roll-out of the hotspots program in the third quarter, the response has already been overwhelming, the CEO said.
The administration's imports helped log its second-best earnings report ever, the steelmaker's Chairman, President and CEO told CNBC on Thursday.
results before Thursday's opening bell, topping Wall Street estimates on earnings per share and revenues.
Higher selling prices and shipments drove a record-breaking second quarter for the company, which makes steel products for numerous industries including the oil and gas space.
But Ferriola said that tariffs weren't the defining factor of Nucor's latest quarter.
"The endless drumbeat of tariffs" on Wall Street has Cramer preaching caution when it comes to investing in individual companies.
"As we get into the heart of earnings season, we’re now hearing an almost obligatory question on nearly every conference call about tariff impact and what it means," he said. "It’s kind of like shadow-boxing."
And the "Mad Money" host understands. As the Trump administration proposes more and more tariffs, it gets more and more difficult for analysts and researchers to predict earnings estimates for potentially affected companies, he said.
"I’m not saying that the whole market will be upended by the trade war," he said. "Now that we’re a couple of weeks into the quarter, though, it’s pretty clear that you can’t be too sure anymore about many more stocks than we thought. Complexity is not a good thing when you’re picking stocks."
In Cramer's lightning round, he shared his take on callers' favorite stocks:
: "Yes, I do [believe it’s possible for Lockheed’s stock to recover]. I think Lockheed Martin is very good. For my charitable trust, which you can follow if you join the ActionAlertsPlus.com club, we own , which I think has better growth than Lockheed but Lockheed is fine."
: "One of my favorite banks. I think you’ll do quite well in it over time, not instantly."
Disclosure: Comcast is the owner of NBCUniversal, parent company of CNBC and CNBC.com. Additionally, Cramer's charitable trust owns shares of Comcast, PayPal, Nucor and Raytheon.