CNBC’s Jim Cramer reviewed 10 stocks on Tuesday that have made surprising gains during the current economic downturn that he said would slow the market in a normal recessive environment.
At the close on Tuesday, the S&P 500 has fallen 0.38% so far this year.
“Entering the pandemic-induced recession, I might have expected these 10 stocks … to be horrendous, but so far they have been some of the biggest winners,” said the host of “Mad Money.” “I think this pandemic paradox may continue to win as long as we get another significant stimulus package … in the not-too-distant future.”
polar Star
Off-road vehicle maker shares rose 3.5% this year to $ 105.26.
“Normally when we go into recession, Polaris is crushed because ATVs and snowmobiles are the ultimate in discretionary spending,” said Cramer. “This time, however, Polaris delivered much better numbers than expected, and even Scott admitted that he hadn’t seen it coming. It turns out that driving an ATV is the ultimate pandemic hobby.”
Sherwin-Williams
The paint supplier’s shares rose 8.57% to $ 633.55 this year.
“In a normal recession, you don’t bother to fix your house” because “it’s an expense in a normal recession” since “houses lose value,” he said. “No this [recession], even if. Home values continue to rise as people flee cities in search of suburbs and exurbanis. “
Mattel
Shares of the toy maker, which has Barbie among its various brands, have fallen more than 16% this year. In the past month, however, the stock has grown 17% to $ 11.32.
“We had CEO Ynon Kreiz at [the show] last night and talked about the Barbie sales that skyrocketed. Big, big numbers. But what I found most interesting, “Cramer said,” is that Uno is now the country’s number 1 largest board game, “even though it’s actually a card game.”
Wayfair
Shares in the online furniture company are up 151% this year. The stock closed Tuesday at $ 227.
“I have had my doubts about this online furniture retailer for years, and the company was in the trap of going into the pandemic, but now it is making a fortune,” said the host. “People need to set up their home offices. No one wants to go to a furniture store when they can order online.”
Thor Industries
Shares of the motorhome and campervan maker have risen 56% to date, closing Tuesday at $ 115.90.
“There are so many wealthy people who want socially estranged vacations and that means buying or renting caravan caravans, which is why Thor’s shares are flying,” said Cramer.
Camping World
Recreational vehicle maker shares have risen 147% to $ 36.45 this year.
“Traders thought it would explode during a recession,” he said. “It turns out it exploded, from $ 3 to $ 36, because people love camping at Covid’s age.”
Supply of tractors
Shares of the agriculture and gardening retailer have increased 53% to $ 143.07 year to date.
“In a pandemic, gardening is like going to Disneyworld or even Paris. I see a lot of novice gardeners following ‘Jimmy Chill’ on Twitter,” said Cramer. “They are getting used to it and many of them are shopping at the gentleman’s farmer’s home away from home.”
Scotts Miracle-Gro
The turf seller’s shares have grown nearly 37% this year to end Tuesday’s session at $ 145.43.
“Gardening newbies don’t want to create anemic zucchini or tomato plants that taste worse than you would find in a convenience store,” said Carmer. “Then they are dumped in Scott’s Miracle-Gro when no one is looking for a garden that cannot be missed.”
Brunswick
The boatmaker’s shares rose 15.54% this year, settling at $ 69.30 on Tuesday.
“The boat ride is a terrible time, and it has the added bonus of being a lot of fun,” said the host.
Boston Beer
The brewer’s shares are up more than 116%. The stock closed Tuesday at $ 817.83.
“In a recession, liquor sales tend to improve, but you might have thought that Boston Beer would suffer this time because all the bars are closed. No,” Cramer said. “It turns out that people who are trapped at home like to drink, and especially like Truly.”
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