On Tuesday, CNBC’s Jim Cramer reviewed 10 stocks that have made surprising gains during the current economic downturn, saying the market would suffer losses in an otherwise normal recessionary environment.
As of Tuesday’s close, the S&P 500 is down 0.38% to date.
The “Mad Money” host said, “Coming into an epidemic-induced recession, you might expect these 10 stocks … to be frightening, but they have been some of the biggest winners so far.” “I think this epidemic can continue to prevail until we get a more meaningful stimulus package … not in the not too distant future.”
Off-road vehicle manufacturer shares are up 3.5% to $ 105.26 this year.
“Usually when we go into a slump, Polaris gets crushed because ATVs and snowmobiles are the ultimate in discretionary spending,” Kramer said. “This time, however, Polaris gave much better than the expected number, and even Scott admitted to me that he had not seen it coming. Riding an ATV is the ultimate pandemic pastime.”
The paint supplier’s shares are up 8.57% to $ 633.55 this year.
“In a normal recession, you don’t bother to fix your house” because “it’s a expense in a normal recession” just as “houses lose value,” he said. “Not this [recession], although. Home values continue to rise as people migrate to cities and suburbs. “
Tiemaker’s shares, among which Barbie counts among its various brands, are down more than 16% this year. However, the stock has gained 17% to $ 11.32 in the last month.
“We had CEO Yon Kres [the show] Last night and she talked about skyrocketing Barbie sales. Big, big number. But what I found most interesting, “Kramer said,” is that Uno is now the No. 1, biggest board game in the country, “even though it’s actually a card game.”
Shares of the online furniture company have gained 151% this year. The stock closed at $ 227 on Tuesday.
“I have had my doubts about this online furniture retailer for ages, and the company was on the ropes going into the epidemic, but now it is making a fortune,” the host said. “People need to set up their home offices. Nobody wants to go to a furniture shop when they can order from the web.”
Shares of the motorhome and camper manufacturer are up 56% year to date, closing Tuesday at $ 115.90.
“There are a lot of wealthy people who want socially distant holidays and that means buying or renting expensive RVs, which is why Thor’s stock is flying,” Kramer said.
Shares of the RV manufacturer have dipped 147% to $ 36.45 this year.
“Traders thought it would fly during the recession,” he said. “Turns out, it blew from $ 3 to $ 36, because people love camping at the age of Kovid.”
Farming and horticulture retailer stocks are up 53% to $ 143.07 year to date.
“In an epidemic, going to Disneyworld or even Paris is like gardening. I see a lot of novice gardeners following ‘Jimmy Chill’ on Twitter,” Kramer said. “They are hanging it and many of them are shopping at the gentleman farmer’s home away from home.”
Shares of the lawn product seller have gained nearly 37% this year, with Tuesday’s session ending at $ 145.43.
“Gardening newbies don’t want to come up with anemic zucchinis or tomato plants that taste worse than what you’ve found in a convenience store,” Carmer said. “So they put on Scott’s miracle-gro when no one can remember a garden.”
Shares of Sailor have gained 15.54% this year to $ 69.30 on Tuesday.
The host said, “Boating is a great time, and it has the added benefit of having a lot of fun.”
The winemaker’s shares are over 116%. The stock closed at $ 817.83 on Tuesday.
“In a recession, liquor sales are better, but you would have thought that Boston Beer would suffer a loss this time because all the bars are just closed. No,” Cramer said. “Turns out people who like to drink alcohol at home, and they particularly like it really.”