CNBC’s Jim Cramer on Tuesday reviewed a sample of stocks that Wall Street players either accepted or dismissed as a post-pandemic investment thesis.
As the stock market, which is a forward-looking indicator, anticipates the development and approval of a Covid-19 vaccine, Cramer sought to decipher what new consumer trends will persist when the world returns to a sense of normalcy.
“As we get closer to a vaccine, this market is increasingly dominated by one question: what will the future look like after Covid?” the “Bad money“Host said.
At Tuesday’s meeting, the key averages all fell less than 1%.
“If the market turns against your favorite Covid names, you can’t expect them to come back anytime soon,” Cramer said. “Longer term? The jury is still not there.”
Demand for stationary exercise bikes that Peloton The number of brands grew exponentially after the gyms closed at the beginning of the pandemic and many went bankrupt and people looked for ways to exercise at home. After short selling interest, or the rate of market participants placing a bet against the stock, peaked over 88% in February, that number has fallen below 6% since the end of April as the share price was catapulted over the summer.
Peloton’s shares closed Tuesday high of $ 100.47, nearly six times the March lows.
“The company is clearly here to stay, and it’s expanding its offerings to make sure the competition stays dead,” said Cramer. “The market is screaming that Peloton is the real deal.”
While McCormick The spice maker continues to feel the impact of the food restrictions restaurants across the country are facing. It made up for some of those losses in the consumer category as people spend more time and cook more from home.
The company reported top and bottom line beats in its quarterly report on Tuesday, increasing revenue 7.6% to $ 1.43 billion. However, the stock fell 2.71% to $ 189.89 during the session. The stock is up nearly 13% this year.
“You’d think this would mean great things for the packaged food companies and they’re putting up absolutely fantastic numbers, but stocks are getting denser because the market believes they have no post-pandemic resilience,” he said. “I think the market is making a bit of a misjudgment here,” but “according to the market, the packaged food suppliers [have] no stamina. “
Wegmesse, an online furniture outfit, has benefited from increased home spending as many workers set up their remote offices and families bought desks for children to participate in home study. Cramer said the company was “saved by the pandemic” after Wayfair dealt with layoffs weeks before the start of public health destruction in the US.
The stock hit a low of $ 21.70 in March and hit a 320-point run to a closing high of $ 342.40 in August as management saw their investments in a home-stay world to pay off gradually. Since then, stocks have pulled back nearly 48 points in just over a month.
“While Wayfair has pulled back more than 15% from its highs, it still acts like it has staying power. Once you start buying a certain type of merchandise online, it’s difficult to go back,” the host said. “I think there are a lot more benefits to it and Wall Street clearly agrees as this stock trades as if growth will stay here.”
For a higher quality furniture game, the host suggests a look RH, formerly known as Restoration Hardware, whose shares are up 76% this year.
The outdoor industry has seen a boon in business as consumers sought ways to enjoy the pandemic summer, which resulted in a surge in vehicle sales such as RVs and boats.
The residue stands before Braunschweig, an Illinois-based boat manufacturer, doesn’t seem to be getting as much interest in its holdings, the host said, as stocks are down 2.35% year-to-date.
“Investors just don’t believe that growth can be sustained. I think they’re dead wrong,” said Cramer. “This industry is growing, the number of new boaters is amazing, and a boat is a great investment … but at least for now there is no objection to the Wall Street ruling.”