CNBC’s Jim Cramer on Tuesday reviewed 10 stocks that have made surprising gains during the current economic downturn that he said would otherwise lag the market in a normal recessionary environment.
As of Tuesday’s close, the S&P 500 is down 0.38% year to date.
“Coming into the pandemic induced recession, you might’ve expected these 10 stocks … to be horrendous, but so far they’ve been some of the biggest winners,” the “Mad Money” host said. “I think this pandemic paradox can keep winning as long as we get another meaningful stimulus package … in the not too distant future.”
Shares of the off-road vehicles manufacturer are up 3.5% this year to $105.26.
“Normally when we go into a recession, Polaris gets crushed because ATVs and snowmobiles are the ultimate in discretionary spending,” Cramer said. “This time, though, Polaris delivered much better than expected numbers, and even Scott admitted to me that he hadn’t seen it coming. Turns out that riding an ATV is the ultimate pandemic pastime.”
Shares of the paint supplier are up 8.57% to $633.55 this year.
“In a normal recession, you don’t bother fixing up your house” because “it’s an expense in a normal recession” as “houses lose value,” he said. “Not this [recession], though. Home values keep rising as people flee the cities for suburbs and the exurbs.”
Shares of the toymaker, whose counts Barbie among its various brands, are down more than 16% this year. In the past month, however, the stock has grown 17% to $11.32.
“We had CEO Ynon Kreiz on [the show] last night and he talked about skyrocketing Barbie sales. Big, big numbers. But what I found most interesting,” Cramer 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 are up 151% this year. The stock closed Tuesday at $227.
“I’ve had my doubts about this online furniture retailer for ages, and the company was on the ropes going into the pandemic, but it’s now making a fortune,” the host said. “People need to set up their home offices. Nobody wants to go to a furniture store when they can order off the web.”
Shares of the motorhomes and campers manufacturer are up 56% year to date, closing Tuesday at $115.90.
“There are so many rich people who want socially distanced vacations and that means buying or renting expensive RVs, which is why Thor’s stock is flying,” Cramer said.
Shares of the RV manufacturer have rallied 147% to $36.45 this year.
“Traders thought it would blow up during a recession,” he said. “Turns out, it did blow up, from $3 to $36, because people love camping in the age of Covid.”
Shares of the farming and gardening retailer are up 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,” Cramer said. “They’re getting the hang of it and many of them are shopping at the gentleman farmer’s home away from home.”
Shares of the lawn products seller have grown almost 37% this year to finish Tuesday’s session at $145.43.
“Gardening newbies don’t want to come up with anemic zucchinis or tomato plants that taste worse than what you’d find at a convenience store,” Carmer said. “So they pour on the Scott’s Miracle-Gro when no one’s looking for a can’t miss garden.”
Shares of the boatmaker are up 15.54% this year, settling Tuesday at $69.30.
“Boating’s a terrific time suck, and it has the added advantage of being a lot of fun,” the host said.
Shares of the brewer are up more than 116%. The stock closed Tuesday at $817.83.
“In a recession, liquor sales tend to do better, but you might’ve thought Boston Beer would suffer this time because all the bars are just closed. Nope,” Cramer said. “Turns out people who are stuck at home like to drink, and they especially like Truly.”