CNBC's Jim Cramer on Monday reviewed the top 10 performing stocks in his basket of 100 equities where investors can find returns during the tough trading environment.
The "Mad Money" host, who introduced his "Cramer Covid-19 Broad Index" in late April composed mostly of health, technology and safety companies to make a case for individual stock picking in lieu of index fund investing, said the broad S&P index is tough to own due to the impact of the coronavirus pandemic on vast swaths of industries.
"[W]hen it comes to the pandemic, the components of the Cramer-Covid Index are part of the solution. They're not getting hurt, they're helping," he said. "That's a big difference versus much of the S&P 500, where you've got a lot of stocks that are coronavirus roadkill."
The comments came after the stock market completed a mixed day of stock trading, with the Dow Jones slipping 109 points, or 0.45%, to almost 24,222, the S&P 500 bumping up 0.01% to 2,930 and the Nasdaq Composite gaining 0.78% to 9,192.
In comparison, the Cramer Covid-19 Broad Index rallied 1.7% to 129 during the trading day. The $11 trillion index has gained 5.8% since its April 27 inception, Cramer noted.
"Remember, there's nothing irrational about these rallies," Cramer said. "The stay-at-home names are simply the right stocks for this difficult moment."
Below are his remarks on the top performers since the inception of the "Cramer Covid-19 Broad Index."
Peloton Interactive: up 34.9% in the past two weeks, 50.7% year to date
"The best performer is one of the most ... hated stocks in the entire market," Cramer said, flagging that "9% of the float [is] sold short, but this maker of connected exercise machines is a perfect fit for the stay-at-home economy."
Moderna: up 32.5%, 242% year to date
"[T]he whole world's relying on Moderna to give us a COVID vaccine before the end of the year," he said. "I'm skeptical. The record for fastest vaccine development is four years and Moderna's never taken one of these to market before, but if they can do it, the stock's going to keep exploding higher."
Livongo Health: up 30.8%, 113.9% year to date
Livongo Health is a "remarkable personal health platform that helps people with chronic illnesses manage their conditions," such as diabetes, hypertension and obesity, "three of the biggest risk factors that can make Covid-19 fatal," Cramer said.
Everbridge: up 30.1%, 98.6% year to date
"Everbridge is a cloud-based software company that helps businesses and governments handle critical event management — think disaster response, including pandemic response," Cramer said, adding that "they serve 8 of the 10 largest cities in America, along with 9 of the top 10 investment banks, 9 of the 10 largest health-care providers [and] 46 of our largest airports. Everbridge owns this market."
Coupa Software: up 28.2%, 43% year to date
"With millions of Americans setting up their own home offices, you better believe all sorts of businesses are in dire need of ... expense management software, which is Coupa's bread and butter," the host said.
DexCom: up 26.8% from April 27, 92.6% year to date
DexCom is a "remarkable company that makes continuous glucose monitors for diabetics," Cramer said. "There's no need to repeatedly prick your finger to test your blood sugar levels. It's the gold standard."
Cloudflare: up 20.8%, 64.8% year to date
Cloudflare is a "cloud-based software company that helps businesses smoothly and securely run their websites," Cramer said. "Needless to say, it's exactly the kind of business that works when so many more things need to be handled online or at home."
Square: up 20.8%, 19.7% year to date
"This one's complicated, as many of Square's brick-and-mortar clients have been obliterated here," he said. "But in addition to the normal payments biz, Square also has a digital peer-to-peer payments app" called Square Cash "that's on fire."
Masimo: up 20.3%, 58.4% year to date
Masimo is a "medical device company that makes noninvasive monitoring equipment, especially pulse oximetry systems that take your pulse and monitor your oxygen levels," Cramer said. "At a time when hospitals all over the country need more ICU capacity, these are the machines they have to buy."
Beyond Meat: up 20.3%, 73% year to date
Beyond Meat is "cutting prices so Beyond Meat can take share" amid a meat shortage, Cramer noted. CEO Ethan Brown has "two huge deals: one with Starbucks rolling out in China and another, I think, is in the offering with McDonald's. It's in Canada right now. It could be bigger. I'm betting he pulls off something gigantic down the line."