"Once we get closer to herd immunity, everything that got put on hold, everything, during the pandemic can make a comeback," the "Mad Money" host said. Subscribe to CNBC PRO for access to investor and analyst insights: CNBC’s Jim Cramer on Wednesday laid out a basket of stocks that are set to bounce back when the U.S. reopens again, though the timeline remains elusive.
“Pent-up demand. Get used to hearing that term because it’s going to define the very next leg of this just impossible-to-believe bull market,” the “Mad Money” host said.
The comments come after the S&P 500 rose to a new closing high as investors weighed the odds of stimulus talks in Washington, and Cramer said the pent-up demand trade helped the major averages rebound from their lows on the day.
The S&P 500 inched up 0.2% to 3,669.01. The blue-chip Dow Jones rose almost 60 points for a 0.2% gain to 29,883.79. The tech-heavy Nasdaq Composite slipped 0.1% to 12,349.37.
The Covid-19 vaccine from Pfizer and BioNTech received authorization from the British government, with plans to roll out the inoculation in the United Kingdom next week. The two drugmakers, along with Moderna, are seeking emergency use authorization in the U.S.
“Once we get closer to herd immunity, everything that got put on hold during the pandemic can make a comeback,” Cramer said.
Cramer expects pent-up demand to be a great benefit airlines, cruise lines, hotels and other industries connected to travel. He named Boeing, United Airlines, American Airlines, Wynn Resorts, Las Vegas Sands, Norwegian Cruise Line and Disney for some vacation picks. He also expects Alphabet, which owns search giant Google, to see a windfall from travel ads.
While he is not a fan of oil, Cramer said the industry also stands to benefit. Chevron and Pioneer Natural Resources are the only two companies in the space that he is recommending as buys.
In the banking space, American Express is the best play for the financial sector comeback, Cramer said.
“While these stocks have been creeping up, I now expect them to explode higher as the analysts are forced to raise numbers,” said Cramer, who also acknowledged that the market is due for a pullback. “These pent-up demand groups, well, they can have a lot more upside now that the vaccine’s right around the corner.”
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