CNBC’s Jim Cramer on Tuesday gave investors a list of stocks he believes fit Americans’ spending habits after navigating the Covid pandemic for the last three years.
“The biggest theme is the rise of this ‘life is too short’ mentality. People don’t want to waste their time anymore,” he said.
More specifically, investors should eye travel, restaurant, live entertainment and gym stocks, according to Cramer.
Here are his picks:
Travel
Delta Air Lines, American Airlines and United Airlines
- “Just be careful and stick to the ones with good execution, meaning stay away from Southwest Airlines – they’re ailing after a huge holiday service breakdown,” he said.
- The stock is still cheap despite its run since the end of September, according to Cramer.
- “I’ve been coming around in Hilton Worldwide, which is expected to have a phenomenal 23% earnings growth this year,” he said.
Cramer said that he expects Airbnb’s stock price to eventually reflect the company’s “terrific” business.
- The rental car company’s 2023 earnings estimates are too low, according to Cramer.
- He said he’d be a buyer of the stock at its current level.
Restaurants
- Cramer said he likes that the company owns higher-end restaurants and has a portfolio that includes Olive Garden, Longhorn Steakhouse and The Capital Grille.
- The coffeemaker’s mission to become the place where people spend the most time outside of the home and office is compelling during the current era of hybrid work, he said.
- Buying shares of food suppliers is another way to play the restaurant industry, Cramer said.
Live entertainment
The company is “growing like a weed,” he said.
- “I like them because they have exposure to both the U.S. and China,” Cramer said.
- He said that investors could also go with the casino real estate investment trust for a live entertainment play in their portfolios.
- Cramer said that he likes the bowling center company as a more low-key option for investors.
Gyms
Planet Fitness and Xponential Fitness
- “I like Planet Fitness, you know that, but you’ve got my blessing to speculate on Xponential Fitness … which is a higher-risk, higher reward situation,” he said.
Disclaimer: Cramer’s Charitable Trust owns shares of Starbucks.
Source: https://www.cnbc.com/2023/01/17/jim-cramer-offers-his-favorite-travel-restaurant-entertainment-and-gym-stocks.html