Jim Cramer reviews biggest winners on the Cramer Covid-19 Index
CNBC’s Jim Cramer on Tuesday reviewed stocks that have put up the biggest gains since the inception of his Cramer Covid-19 Index.
The index, which was first developed in the throes of the health and economic crises in April, is composed of stocks that Cramer predicted would benefit from both the disruption and recession that followed the coronavirus outbreak.
“We put a hundred stocks into this list, but you can really break them into two groups: the ones that benefit from the stay-at-home economy and the ones that work in a recession,” the “Mad Money” host said. “Nearly five months later, the work-from-home tech stocks have given you extraordinary gains, while the traditional slowdown stocks they laid an egg.”
The index reached a peak close near 164 on Wednesday and has since declined more than 9% almost a week later as part of a market sell-off that knocked the high-flying tech stocks on the market and major averages off their highs.
Since its creation in late April, the Cramer Covid-19 Index has grown almost 22% as of Tuesday. By comparison, the S&P 500 is up about 18% in that same period dating back to April 24.
The biggest gainers on the index are “technology companies that help us cope with the pandemic, and while they’ve all been getting crushed over the last few days, I think many can bounce,” Cramer said.
Fastly: up 253% to $81.08
“While Fastly’s still very expensive here, it is a textbook stay-at-home economy play,” Cramer said.
Livongo Health: up 200% to $123.10
“The digital health coach that’s merging with Teledoc to create a full-service online health care system,” he said.
Peloton: up almost 170% to $85.60
“I know a lot of people were skeptical of this company that makes connected exercise equipment, but with gyms closed, it’s the best way to work out,” Cramer said.
Square: up 124% to $139.11
“I think this payment technology stock’s been gaining adherents because money managers want to own financials with minimal credit risk, and they also want something that enables digital payments,” the host said. “They’ve got an amazing payment ecosystem, but small businesses are bad clients to have right now.”
Zoom Video: up nearly 121% to $350.88
“They’ve gone from zero to household name in the blink of an eye. Even when we beat Covid, Zoom’s here to stay,” he said.
Twilio: up more than 105% to $226.16
“This is an enterprise software play that helps app developers communicate with their own clients,” Cramer said. “They make it easier for companies like Lyft and Airbnb to send you texts.”
Zscaler: up 97% to $133.17
“Zscaler’s the top-performing cyber-security play,” he said.
DocuSign: up almost 96% to $205.63
“This one took a header when it reported last week, but even after the recent shellacking, it’s still nearly double since we created the index,” Cramer said. “The quarter was perfect, [but] nobody cared because of the sell-off.”
Datadog: up 91% to $79.98
“DataDog is a fabulous analytics company that does cloud monitoring,” he said.
Wix.com: up almost 86% to $249.78
“Wix.com, helps small businesses create the websites they need in an environment where it’s digitize or die,” he said.