Post-crisis outlook: Jim Cramer: These corona profiteers should hold up after the pandemic | message
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• Corona crisis created new investor favorites
• What does the future look like after the pandemic?
• Jim Cramer assesses the potential of the corona profiteers
Hopes for a corona vaccine are growing on the stock market. That is why many investors are already wondering how business will go when things get back to normal.
Jim Cramer, presenter of the CNBC program “Mad Money”, also discussed at the end of September which corona profiteers could well develop strongly in the post-crisis period. To do this, he took a closer look at their trading activities on the market. However, he himself does not agree with the current market development everywhere, which is due to the fact that he tries to look further into the future: “If the market turns against your preferred Covid names, you must not expect them to change anytime soon recover, “said Cramer. “In the long term, however, the judgment is still pending.”
To protect themselves from infection, people are increasingly staying at home. In addition, many gyms have been forced to close temporarily. Nevertheless, people want to keep moving, which benefits the fitness company Peloton Interactive – the demand for their exercise bikes and the associated subscriptions for online courses shot up rapidly within a very short time.
Thanks to this development, the Peloton share price has increased almost sixfold since March. Against this background, hardly anyone wants to bet against the share: The short seller rate has fallen from over 88 percent in February to below 6 percent.
“The market is screaming that Peloton is the real deal,” said Cramer, agreeing with popular belief: “The company is clearly here to stay and is now expanding its offering to ensure that the competition stays dead. ”
The share of the spice supplier McCormick also benefited from the stay-at-home trend. Although his business with restaurants suffered from the crisis, in return the consumer sector grew strongly because people were now cooking more at home.
After the McCormick share rose significantly in the first few months of the crisis, however, it came under pressure in the last few weeks – even though the company was able to show an increase in sales in its most recent quarterly report.
“You’d think this bodes well for packaged food providers and they’re doing fantastic numbers, but stocks are still being beaten because the market believes they won’t have the strength to hold their own after the pandemic “, explains Jim Cramer the latest price setback. Personally, however, he disagrees: “I think the market is making a small misjudgment here.”
According to Cramer Wayfair, it was downright “saved by the pandemic”. If the US online furniture shop was forced to layoffs shortly before the crisis, business has recently flourished because many people withdrew to the home office and ordered office furniture.
Against this background, Wayfair shares rose by over 300 percent during the crisis. However, it suffered a severe setback in late August. Jim Cramer remains optimistic: “Even though Wayfair has lost more than 15 percent of its high, it still trades as if it has the strength to stay. Once you’ve started selling certain types of goods online then it’s hard to go back, “says the CNBC host. “I think the benefits outweigh the benefits, and Wall Street clearly shares the same view as the stock trades as if the growth is permanent.”
Despite the pandemic, people wanted to enjoy the summer and were looking for ways to be able to do this safely in times of corona. This gave the outdoor industry a boom, and vehicles such as mobile homes and boats were also in high demand.
In light of this, Brunswick shares have rallied sharply since March. In the past two months, however, it has lost value again. “Investors are simply not convinced that growth can be sustained. But I think they are completely wrong with this,” said Cramer, optimistic about Brunswick shares. He continued, “This industry is expanding, the number of new boat owners is fantastic and a boat is a great investment … but the Wall Street verdict is beyond debate, at least for now.”
Finanzen.net editorial team
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