CNBC’s Jim Cramer said investors should look at stocks that are exposed to outdoor activities like camping and boating on Monday when the economy reboots.
“With the end of the pandemic, the subject of ‘nature’ has more legs than you think in my opinion,” said the host of “Mad Money”. “It could be a huge summer, even bigger than last summer, which means any of these stocks could have legs, especially with so many of the big institutional investors moving away from them.”
Below are Cramer’s recommendations:
Brunswick: “While the stock hit a new all-time high today, it just doesn’t reflect the incredible numbers we saw last week,” said Cramer. “This high quality outdoor activity inventory will sell for less than 13x next year. I think that’s ridiculously cheap.”
LCI Industries: “Lippert is selling … for only 15x earnings estimates for next year, a solid return of 2%. So if the stock sells tomorrow you might want to dive deeper into the quarter and use that weakness as a buying opportunity if you like something. ” You see, “he said.
Thor Industries and Winnebago Industries: “They moved so much goods this past spring and summer that supplies are incredibly scarce and they could make a fortune in this environment,” he said. “Thor is [selling] at 14 times the profit, Winnebago at 11 times the profit. Thor gets that higher multiple because it’s for the best, but both of them work here. “
Camping World: “I think this is a great regional to national growth story and only sells for 9x profit,” said the host. “If you can get it at a discount after the quarter, I think you’ll pounce.”
Airbnb: “This is a great way to tackle the upcoming travel boom, including people renting homes in remote areas to enjoy the outdoors,” said Cramer. “I’m waiting for the insider selling lockdown to expire, something that could hammer the stock and maybe give you a great buying opportunity.”
Other picks include Newell Brands, Yeti, Vista Outdoor, Callaway Golf, Acushnet, and Pool Corp.