The coronavirus pandemic has created a lot of so-called “new normals” in our economy. But Jim Cramer told his Mad Money viewers Tuesday that not all of them are sustainable. Once vaccines begin to usher in a bit of the “old normal,” some stocks will begin to fizzle. Others will have staying power.
“You can’t paint with too big of a brush,” Cramer cautioned. Some stocks, like DocuSign (DOCU) – Get Report, are a vast improvement over signing documents in person or waiting for them in the mail. That’s why the rally in DocuSign is sustainable. The same applies to PayPal (PYPL) – Get Report, which has become the de facto payment platform of the online age.
The same does not apply for the rally in rival payment platform Square (SQ) – Get Report. Cramer said Square is good, but not great, and can easily be copied. He was also bearish on Peloton (PTON) – Get Report in an era when people start heading back to the gym, as well as on Kimberly-Clark (KMB) – Get Report and Coca-Cola Co. (KO) – Get Report, two stocks that he said will be among the first to sell off once investors return to growth stocks.
Even in the race for a vaccine there are winners and losers, Cramer said. Pfizer’s (PFE) – Get Report shares have fallen 10% since the company’s vaccine began shipping because vaccines are a tiny part of what the Pfizer does. Rival Moderna’s (MRNA) – Get Report shares have rallied, but Cramer said once Johnson & Johnson’s (JNJ) – Get Report vaccine is approved, Moderna will likely suffer a hit to its share price.
Cramer and the AAP team are looking at everything from earnings and tariffs to the Federal Reserve. Find out what they’re telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts Plus.
Don’t miss Cramer’s best, every day, with fast, actionable strategies: StreetLightning.
On Real Money, Cramer keys in on the companies and CEOs he knows best. Get more of his insights with a free trial subscription to Real Money.
Search Jim Cramer’s “Mad Money” trading recommendations using our exclusive “Mad Money” Stock Screener.
To watch replays of Cramer’s video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer’s free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer’s Action Alerts PLUS had no position in the stocks mentioned.
