CNBC's Jim Cramer on Monday dished out a handful of stock plays that can give investors exposure to the great outdoors.
In early June, the "Mad Money" host said the camping and RV stocks are "back in a big way" amid the social distancing culture that has reshaped society during the coronavirus pandemic. He added four more companies to his outdoor opportunities.
Three of those stocks are taking a breather after a big run, and Cramer thinks they're worth buying into weakness.
"In the summer of Covid, it's hard to go wrong with the great outdoors stocks, because people are desperate for a safe way to do anything," Cramer said. "That's why I like Pool Corp., Tractor Supply [and] Yeti into weakness, and I'm willing to take a chance with the lagging — and some people think terrible — Newell Brands."
PoolCorp., a swimming pool parts and equipment wholesaler, has seen its shares rise about 42% this year, tacking on another 2.36% gain Monday to finish at $301.35.
The company is set to report second-quarter earnings Thursday afternoon. Wall Street is looking for profits of $3.18 per share on nearly $1.17 billion in revenues.
Cramer said expectations are high.
"We know Pool Corp.'s doing well because they gave us a very bullish business update at the end of May, with big demand for maintenance supplies and pool construction components," Cramer said. "If you don't already own it, put a small position on it. Hopefully, it pulls back before the earnings due to some exogenous event" and you can "buy more."
Cramer recommended investors buy into Tractor Supply, a retailer dealing in farming, ranching and gardening products. Gardening demand is up, as people spend more time at home than in previous summers.
The stock has rallied almost 55% this year, finishing Monday's session up almost 3% to $144.69 per share. The company is set to report quarterly results on Thursday.
"Trying to game this quarter is a mug's game — the stock's run up too much — but I think this company has a fabulous long-term holding. If the stock dips, you need to pounce," Cramer said. "The company's been making some major digital investments lately; they just relaunched their website. I think that could give you the next leg higher even after the pandemic goes away."
Yeti, which makes high-performance outdoor gear such as coolers, tumblers, bottles and mugs, has had a monster run on the market in the last three months. The stock surged 86% in that time frame, gaining 2% on Monday to close at $45.05.
Cramer began recommending this equity weeks after its public offering in 2018.
"I think Yeti is a perfect fit for the great outdoors thesis, although when you consider that the stock's nearly tripled from its March lows" investors can "maybe buy some and, again, wait for a pullback," Cramer said. "Remember, I'm blessing buying some."
Newell Brands, formerly Newell Rubbermaid before its $13.22 billion merger with Jarden in 2018, is one laggard stock Cramer is eyeing. The company's portfolio includes brands such as Paper Mate, Sharpie, Elmer's, Rubbermaid and Graco, among other household items including lanterns, stoves and tents.
Newell shares tumbled nearly 49% in the February-March market meltdown, falling below $11 apiece. The stock has since come back 52%, but its $16.07 closing price remains almost $5 off its highs this year.
Shares are down 16% year to date, well behind the 0.65% gain the S&P 500 now boasts in the same period.
"Newell reports again in 10 days, and I'm betting the numbers will be better than feared. I think the weakness from the office and school-related businesses is already baked in," Cramer said. "Wall Street's ignoring the potential strength in the company's outdoor brands."