Mad Money

Cramer breaks down stay-at-home stock picks 'for the long haul'

Key Points
  • "The stay-at-home economy might seem temporary, but working remotely has so many advantages that I think we might be witnessing a more permanent shift in that direction," CNBC's Jim Cramer said.
  • "That's why I like all these stay-at-home stocks for the long haul," the "Mad Money" host said.
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Jim Cramer: Domino's, Chipotle 'will actually survive this period'

CNBC's Jim Cramer on Monday rolled out a list of stay-at-home stock picks of companies he thinks will continue to perform even after lockdown mandates across the country are lifted.

"The stay-at-home economy might seem temporary, but working remotely has so many advantages that I think we might be witnessing a more permanent shift in that direction," the "Mad Money" host said. "That's why I like all these stay-at-home stocks for the long haul."

Below is a list of names that he is banking on:

Constellation Brands

Constellation Brands nearly lost half its market value between February and March as restaurants and bars were order closed across the country in efforts to stop the spread of coronavirus. Most of the company's business, however, whose beer brands include Corona, Modelo and Pacífico, comes from outside of bars of restaurants.

CEO Bill Newlands said Friday that as much as 90% of its sales are for at-home consumption.

"At the end of the day, quarantine doesn't make people stop drinking, they just buy their beer at the supermarket rather than a bar," Cramer said. "If anything, they drink more when times are tough, which makes this a terrific recession stock."

Conagra

After reporting earnings last week, Conagra — whose packaged food brands include Slim Jim, Healthy Choice, Hunt's and Pam — said its sales have picked up as people stock up on pantry items, including signs of a comeback in its classic Chef Boyardee pasta line.

"Conagra's not perfect. It's got history of spotty execution, but I think it works here," Cramer said. "This is the pantry aisle's time to shine."

PepsiCo

Cramer called PepsiCo the "king" of snacking with names like Frito-Lay and Quaker in its portfolio.

"While we haven't seen their lockdown numbers yet because PEP reports early, I bet they make a killing," the host said.

Hormel Foods

"[I]t's great to know that Hormel just declared its 53rd-consecutive annual dividend boost," Cramer said. "A lot of companies are slashing their dividends here, but not in the packaged foods space."

Domino's Pizza

Domino's Pizza continues to add to its store count in efforts to beef up its delivery services. Cramer thinks it will help the company beat out competition in the tough delivery space, post-pandemic.

"This pandemic is crushing the mom and pop pizza places, sadly," he said. "We really need that small business bailout money, and we need it fast, or else Domino's wins by default."

Chipotle

Cramer also noted Chipotle's efforts to improve its delivery program, though the franchise relies on third-party delivery services.

"I think the stock is a buy, even up here. Their balance sheet is so perfect," he said.

"When you look at the collapse of so many restaurants, especially the ones that are drowning in private equity debt going into this, Domino's and Chipotle are clearly the exception rather than the rule," he added. "They belong to the handful of chains that will actually survive this period."

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