On Wednesday, Jim Cramer of TBEN provided a list of damaged equities that he believes are now inexpensive enough to purchase.
According to Jim Cramer, Entire stocks which are in the Russell 3000 and satisfy the following requirements set by the host “Mad Money: down more than 50% from highs and selling for less than 50 times earnings. They must also meet a minimum market capitalization requirement.
“In other words, we want huge discounts, but we also want quality companies that are profitable, meaning their stocks have gotten cheaper as they’ve fallen,” Cramer said. “After these seemingly incessant beatings, we finally have a bunch of stocks that are cheap enough to buy,”
Market Capitalizations Requirements
Market Cap Between $10 Billion or Above
According to Jim, there are even companies having worth $10 billion or more that meet the criteria are as follows
Clarivate, Zoom Video, Discovery, Twitter, ViacomCBS, Etsy, Rocket Companies, Pinterest, Enphase, Biogen, and Moderna.
Jim stated that he personally loves Enphase in the solar industry and Etsy for e-commerce.
He stated that it was actually shopping for him.“ He further stated that Twitter is “really interesting” and “Pinterest can be a buy”, however, it may take some time.
Market Cap Between 5 and 10 Billion Dollars
According to Cramer, there are ten companies having worth between $5 billion and $10 billion that met his criteria. The companies are-
AVIS Budget, Upstart, Boston, Beer Penn National, Altice USA, Gap, Playtika Holding, UWM Holdings, Novavax, and Maravai Lifesciences.
Jim suggested that most of those equities, including UWM Holdings, Novavax, and Penn National, must be avoided for the time being.
Fintech company, Upstart, on the other hand, may have gained a head start last year. Cramer said. “I don’t know if it’s cheap [at] 43 times the profits, but they’re real… so we’re going to stick with that,”
Market Caps Below $5 Billion
Jim has put the list of 89 companies that meet his criteria of being down more than 50% from highs and trading at less than 50 times earnings. Cramer only mentioned stocks that piqued his interest, such as digital clothes retailer Revolve Group, which he claimed was “unfairly punished” despite a successful past quarter.
In light of Kohl’s two acquisition offers, he also highlighted Bed Bath & Beyond and Ollie’s Bargain Outlet, implying that the businesses “may all be worth more than we think.”
Cramer believes Clarence, a provider of automotive technologies, will “bounce back” once the semiconductor issue fades and car manufacturing increases.
Torrid, a direct-to-consumer business focused on plus-size fashion, “maybe a hit,” according to Cramer, noting that the company’s shares are selling just around $8, despite the fact that it expects to make approximately $1 per share this year.