CNBC's Jim Cramer on Tuesday reviewed a sample of stocks that he said Wall Street players have either embraced or discarded as a post-pandemic investment thesis.
As the stock market, which is a forward-looking indicator, anticipates the development and approval of a Covid-19 vaccine, Cramer attempted to decipher what new consumer trends will have staying power when the world returns to some sense of normalcy.
"As we get closer to a vaccine, this market's increasingly dominated by one question: What's the post-Covid future gonna look like?" the "Mad Money" host said.
In Tuesday's session, the major averages all declined less than 1%.
"If the market's turned against your favorite Covid names, you can't expect them to come back any time soon," Cramer said. "Longer-term, though? The jury's still out."
Demand for the stationary exercise bikes that Peloton makes grew exponentially after gyms shut down, many going bankrupt, at the start of the pandemic and people sought ways to exercise at home. After the short-seller interest, or rate of market players placing a bet against the stock, peaked above 88% in February, that number has since plummeted below 6% since late April as the stock price catapulted over the summer.
Shares of Peloton closed Tuesday at a high of $100.47, a nearly six-fold increase from its March lows.
"The company's clearly here to stay and it's expanding its offerings to ensure the competition stays dead," Cramer said. "The market's screaming that Peloton is the real deal."
While McCormick continues to feel the effects of the dining limitations that restaurants are facing across the country, the spice-maker has made up for some of those losses in the consumer category as people spend more time and cook more from home.
The company reported top and bottom-line beats in its quarterly report Tuesday, growing revenues by 7.6% to $1.43 billion, but the stock declined 2.71% to $189.89 during the session. The stock is up nearly 13% this year.
"You'd think that would mean great things for the packaged food companies, and they're absolutely putting up fantastic numbers, but the stocks keep getting clobbered because the market thinks they have no post-pandemic staying power," he said. "I think the market's making a little of a misjudgment here" but "in the market's opinion, the packaged food players [have] no staying power."
Wayfair, an online furniture outfit, has benefited from increased spending on the home as many workers furnished their remote offices and families bought desks for kids participating in home learning. Cramer said the company was "saved by the pandemic" after Wayfair dealt with layoffs weeks before coronavirus began to devastate U.S. public health.
The stock bottomed at $21.70 in March and enjoyed a 320-point run to a closing high of $342.40 in August as management saw their investments begin to pay off in a stay-at-home world. Shares have since pulled back nearly 48 points in just over a month.
"While Wayfair's pulled back more than 15% from its highs, it's still trading like it's got staying power. Once you start buying a given type of merchandise online, it is tough to go back," the host said. "I think it's got a lot more upside and Wall Street clearly agrees, because this stock is trading like the growth is here to stay."
As for a higher-quality furniture play, the host suggests looking at RH, previously known as Restoration Hardware, whose shares have rallied 76% this year.
The outdoor industry has seen a boon in business as consumers sought ways to enjoy the summer in the pandemic, which led to an increase in vehicle sales like motorhomes and boats.
The backlog facing Brunswick, an Illinois-based boat manufacturer, doesn't seem to be attracting as much interest to its stock, the host said, as shares are down 2.35% year to date.
"Investors simply don't believe the growth can be maintained. I think they're dead wrong," Cramer said. "This industry's expanding, the number of new boaters is amazing, and a boat's a great investment ... but there's no arguing with Wall Street's verdict, at least for now."