November 28, 2023

Stocks, which flourished during the height of Covid-19, have lost momentum, but CNBC’s Jim Cramer said Monday that not all winners of the pandemic should be branded as reopening losers.

“If your company committed a murder during the pandemic, it has become toxic in this market, even if business is still booming,” said the Mad Money presenter. “That could create some buying opportunities, but only if you are very patient and willing to put up with some pain.”

Some of those buying opportunities are in stocks of companies related to the outdoor lifestyle, including recreational vehicle maker Thor Industries and boat maker Brunswick, Cramer said. Thor and Brunswick stocks are down 29% and 18.7%, respectively, from 52-week highs earlier this year as the economy rebounds from last year’s lockdowns.

Some investors fear consumers will be leaving Airstream campers and Mercury boats behind for hotel stays and air travel. However, the high backlogs and continued high demand for Thor and Brunswick products show a different business case, Cramer said.

“Covid didn’t just give them a temporary boost, it was a long-term game changer,” he said. “The bears are convinced that there is no way business can stay this good, so the price of profit multipliers goes down for large numbers.”

Campbell Soup is another underperforming stock that Cramer highlighted. The stock, he noted, fell earlier this month after missing quarterly estimates and cutting its forecast. Despite those hiccups, the snack and food maker has gained market share, he added. The stock is more than 13% below its January high.

Disney, which will benefit from the return of theme parks and movie theaters, has what Cramer called “a broken inventory.” It’s down about 14% since March, in part because investors are focused on the slower growth rate of the company’s video streaming platform, Disney Plus.

“In my opinion [CEO Bob] Chapek can change things, but he has to avoid Disney Plus becoming just another ESPN, which dragged the stock down for years after its numbers peaked, “Cramer said.” Chapek needs to remind people that the rest of the company exists and exists is perfectly prepared for the big reopening. “