Cramer: The Strongest Companies Are the Winners of the Trump Regime

 | Apr 18, 2017 | 10:56 AM EDT
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While we wait for small and medium sized businesses to benefit from the deregulation dictates coming from President Trump, it may be worth noting that so far the winners in this regime may be the biggest of whatever sectors may be out there.

These are the ones that can offer the lowest costs without hurting their numbers -- something that few smaller and more indebted businesses can offer -- and it's helping in a newly frugal, price comparison-oriented society.

McDonald's (MCD) is clearly benefiting from its efforts to add technology, but I think it is also using its considerable heft to make sweeping changes that the franchisees seem to be buying into.

Remember, to get this kind of change you need all aboard. I believe that Wall Street still hasn't figured this out. That's why he keeps surprising. McDonald's is better able to handle any rising labor or food costs.

Walmart (WMT) and Costco (COST) seem similarly positioned. Their size is a positive and it is working for them. They are both doing better and Walmart is truly going to be a winner, even in an Amazon (AMZN) world, simply because of its balance sheet. Costco's a winner because of its model.

While I know Bank of America (BAC) is down, it's safe to say that it and JP Morgan (JPM) (it would have been Wells (WFC) if not for the screw-ups) have made terrific strides in cutting costs and boosting share. Goldman (GS) , perhaps, is proving that its lack of a gigantic deposit base deprives it of some easy money from the rise in fed funds.

UnitedHealth (UNH) has worked wonders being so big and so strong in the face of all of the changes. The fact that it withdrew from the exchanges makes it a welcome island in a sea of turmoil.

The biggest do best when there is change, and there is a rise in costs and a rise in regulation that we are still living with.

Maybe it changes over time if Trump can get anything done with Congress. But, right now, the strongest are thriving and the weakest are stalled or going by the wayside.

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