Tags: jim cramer | return to normal | stocks | buy | investors

Jim Cramer: 34 'Return to Normalcy' Stocks to Buy

By    |   Wednesday, 25 November 2020 01:22 PM

Investment guru Jim Cramer has unveiled a list of “return to normalcy” stocks for savvy investors to buy as COVID vaccines become a reality.

“I think you have to buy a couple of these vaccine winners on any weakness, although when it comes to retail, I just say buy some, period, because there’s no time to wait for a dip,” Cramer said on CNBC.

“No matter what, I’d pick two or three of these names, then wait for the next piece of bad news that freaks people out so you can buy them into weakness,” the “Mad Money” host said of his stock picks.

“If you just owned the stay-at-home names, you got bushwhacked today. But don’t worry, I think you’ll get another chance to pick up some of these vaccine winners at lower levels,” he said.

Aerospace

  • Boeing
  • General Electric
  • Honeywell International
  • Southwest Airlines
  • United Airlines

Retail

  • Macy’s
  • Kohl’s
  • L Brands
  • American Eagle Outfitters
  • Gap
  • Tapestry
  • Levi Strauss & Co
  • Federal Realty
  • Simon Property Group
  • Ulta Beauty
  • Estee Lauder
  • Target

Vaccine Distribution

  • McKesson

Travel

  • Walt Disney
  • Norwegian Cruise
  • Royal Caribbean
  • Carnival

Restaurants

  • Darden Restaurants
  • Texas Roadhouse

Oil

  • Pioneer Natural Resources
  • Chevron

Autos

  • General Motors
  • Tesla
  • Illinois Tool Works
  • DuPont
  • NXP Semiconductors

Financials

  • Visa
  • Mastercard
  • American Express

To be sure, U.S. stocks rallied on Tuesday and the Dow breached the 30,000 level for the first time, as investors anticipated a 2021 economic recovery on coronavirus vaccine progress.

Recent data suggesting a COVID-19 vaccine could be available before the end of the year has put the S&P 500 on course for its best monthly performance since April and sparked demand for value-linked stocks that were hammered following the coronavirus-driven crash earlier this year, Reuters said.

"A little bit of decreasing uncertainty on the election front, the market seems pretty favorable on the Yellen announcement, it just seems like one of those good days where all things are moving a little higher," said Ross Mayfield, investment strategy analyst at Baird.

"If 2020 has shown us anything it is that stock markets have a tremendous ability to look past bad news if there is sun on the horizon."

Meanwhile, mom-and-pop stock traders, reaping the rewards of a faith that has proved prescient all year, are doubling down on a rally that has pushed valuations into uncharted land, Bloomberg explained.

Their voracious appetite for equities, unchecked by the pandemic or presidential transition, has sent markets to records and is whipping up volume in the normally sleepy Thanksgiving week. More than 26 billion shares changed hands on American exchanges over the last two days, up 72% from the same stretch a year ago. Demand is swamping brokerage websites, with both Vanguard and Merrill Lynch confirming their platforms experienced outages today.

Infrastructure is being strained as an ocean of money flows into American equities. As of last week, some $53 billion had been sent to U.S. exchange-traded funds in November, perfectly timed for the Dow Jones Industrial Average’s first foray above 30,000. Also ballooning are valuations. Buying the S&P 500 right now entails paying about $2.69 for every dollar of annual revenue, on a per-share basis. That’s way above any price-to-sales ratio reached in the dot-com bubble.

“There’s nothing this year that’s told them this wasn’t the right thing to do. Every time there was a dip, retail would flow in, and they were rewarded,” said Jerry Braakman, chief investment officer of First American Trust, in Santa Ana, California, which manages around $2 billion. “People are path-dependent, and if it’s been working, why change?”

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Investment guru Jim Cramer has unveiled a list of “return to normalcy” stocks for savvy investors to buy as COVID vaccines become a reality.
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2020-22-25
Wednesday, 25 November 2020 01:22 PM
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