Cramer says his ‘Go’ checklist shares are nonetheless value shopping for, regardless of good points
CNBC’s Jim Cramer revisited his “Go” list of 11 returning stocks on Tuesday, recommending that a handful of names in the cart remain open to buy.
“Aside from Mastercard and 3M, our Go stocks have had great results since we learned about the vaccine in November. Some of them got a little rich,” he told Mad Money, “but the rest of the list is actually still worth buying. “
“With the way our government botched the vaccine rollout, you’d better believe that this list will get another leg up once the pandemic is finally under control.”
Of the eleven companies on the list, Cramer concludes that, despite double-digit gains since the list was created last summer, more than half remain at attractive levels that investors can focus on. Cramer found the stock group has risen 36% since the list was presented in early August, compared to around 14% gains for the S&P 500 and Dow Jones. The Nasdaq Composite gained more than 18% over the same period.
“On average, the Go List outperformed the major indices,” he said. “However, if you make each name bigger, some worked a lot better than others.”
“I think those who work will have more benefits when Americans are vaccinated and a new president is sworn in with a more serious federal Covid plan.”
The Go-Listen Index includes chemical, entertainment, financial, apparel, and railroad companies that Cramer expects to improve manufacturing as coronavirus vaccines spread and the economy rebound after a discouraging year 2020 recovered and returned to a certain sense of normalcy.
Of the 11 companies he expects to show impressive year-on-year comparisons over the next 12 months, Union Pacific, Emerson Electric, Nucor, PPG Industries, Ralph Lauren and PVH have more leeway due to Cramer’s prospects.
Union Pacific, which is reported to report fourth quarter earnings on Thursday, posted a year-over-year revenue decline of nearly 13% in the first nine months of 2020. However, stocks rose 15% over the course of the year. Since August, the stock is up 22%.
In Nucor, business declined nearly 15% over the same period from January to September, and its share price was down 5% for the year. The stock is up 29% since August.
Emerson Electric’s sales were down 11% year over year between January and September, while shares rose over 5% for the full year. Since August, the stock is up 29%.
After sales fell more than 12% in the first three quarters of 2020, PPG shares closed the year up 8%. The stock is up 31% since August.
In the quarters hit by the pandemic, clothing companies Ralph Lauren and PVH saw sales decline more than 30% from January through September. Their stocks both fell about 11% in 2020, but have increased about 56% and 90%, respectively, since Cramer compiled his Go list.
For the other winners on the go list, Disney stocks are up 35%, Nike stocks are up 38% and DuPont stocks are up 54%. Cramer suggested that these stocks can pull back before buying.
The laggards are Mastercard and 3M. The former is down less than 1% since the beginning of August, while the latter is up almost 9%.
“Between the resurrected banks and all these fast-growing IPOs for new financial technologies, there are fewer opportunities to own a stock like Mastercard. I got that wrong,” said Cramer. “I think Mastercard is a great company, but Wall Street just isn’t interested right now. Maybe they’ll take off when cross-border travel comes back.”
However, he gave a more promising forecast for 3M in the short term.
“3M has some serious problems – I put this problem on the list because I thought management could get over it,” he said. “3M reports next Tuesday and they did damn well last time around. I think the good numbers will continue.”