CNBC host Jim Cramer has picked stocks of tech giant $Apple Inc(AAPL.US)$ and thirteen other companies as best plays amid a potential rebound in consumer spending in the U.S.
What Happened
Cramer said on his “Mad Money” show that recent upbeat quarterly earnings results from major banks such including $JPMorgan Chase & Co(JPM.US)$ and $Goldman Sachs Group(GS.US) indicate a surge in consumer spending soon.
Cramer believes that consumer spending can ramp up to a totally unexpected positive level, “especially with millions of parents getting their child tax credits just this week.”
Cramer highlighted stocks of $Delta Air Lines Inc(DAL.US)$, $American Airlines Group Inc(AAL.US)$, $American Express Co(AXP.US)$, $Poshmark, Inc.(POSH.US)$, $Brunswick Corp(BC.US)$ among his top picks.
He also sees stocks of $Williams-Sonoma Inc(WSM.US)$, $RH(RH.US)$, $Best Buy Co Inc(BBY.US)$, $Costco Wholesale Corp(COST.US)$, $Toyota Motor Corp(TM.US)$, $Qualcomm Inc(QCOM.US)$, $Broadcom Inc(AVGOP.US)$, and $Skyworks Solutions Inc(SWKS.US)$ as benefiting from the anticipated surge in consumer spending.
Why It Matters
Cramer's selection of stocks indicates that consumers are likely to spend more on travel, apparel, technology, electronic and luxury items as the U.S. economy recovers from the impact of the pandemic.
Consumers are flush with cash as the government rolls out more stimulus checks in the U.S. and these companies are expected to benefit from the increased spending.
Shares of several of these companies are down in double digits from their highs recorded earlier this year.
Price Action: Apple shares closed 2.4% higher in Wednesday's trading session at $149.15.
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