The “Bad money” Hosts said that even though the pandemic is now in its seventh month, stocks continue to have reasons to move higher. Other beneficiaries are the builders and packaging companies, he said.
“The story of staying home doesn’t stop,” said Cramer. “Any time we have another wave of Covid infection – this is wave three, when wave four and wave five occur – these stocks will keep roaring. I bet they will keep roaring until we are all vaccinated. ”
Cramer acknowledged that there are some investors dreading Zoom’s valuation, as its stock is up 688% so far in 2020. It hit another all-time high on Thursday. However, the former hedge fund manager said the company did a good job innovating, including his own recently announced product This allows organizations to host paid events through Zoom.
“All of this keeps Zoom a step ahead of the group and the short sellers,” said Cramer. “What if it trades at 50x sales? Think of Zoom as a company trying to match its market cap. If we go back to another lock, pseudo-lock, or partial lock, then believe You better zoom gets a big boost. ”
DoorDash will also be released soon creative new offers Adapting to the work-from-home world that provides tailwind for the stock after theirs planned IPO, Said Cramer. The company has launched an initiative to give businesses mealtime benefits and perks while working remotely. This is a replacement for catering lunches that arrived at the office earlier.
Packaging companies represent another category of pandemic winners under the radar, according to Cramer. In particular, Cramer said stocks like International paper and West skirt had been a real straggler before the health crisis, and he had avoided recommending her.
“They added too much capacity to meet demand for supply. It got so bad that they had to close mills and stop production,” Cramer said. “But that has changed with the economy staying at home. We have never had so much demand for boxes. Look at that FedEx up again today. ”
Big restaurant chains like Chipotle and Darden restaurantsCramer, the parent company of Olive Garden, has the balance sheets and the scales to weather the coronavirus persistence. This is especially true as smaller restaurants struggle with no relief from Washington, he added.
Cramer acknowledged that not every stay-at-home stock has been successful lately. Video game stocks have largely stalled, he said, but claimed there would be a spike in the future. “”Sony and Microsoft are about to bring brand new consoles to market. I recommend buying Take-Two Interactive, my favorite. My charitable trust owns it. It’s going to be a huge holiday season. “
Disclosure: Cramer’s charitable foundation owns interests in Microsoft and Two-Two Interactive.