Most COVID-19 plays that saw staggering gains during the pandemic have come well off their highs, as irrational exuberance gives way to skepticism regarding continued fundamental outperformance.
What Happened: CNBC “Mad Money” host Jim Cramer on Thursday handpicked two stocks that have rebounded since peaking amid the height of the pandemic.
“Most of the COVID stocks are still in the doghouse -where they belong. But some of them have started making real comebacks and I think they’ve got more room to run,” the stock picker said.
See Also: Best COVID-19 Related Stock
Cramer’s Picks: Pinterest Inc. PINS and Etsy Inc. ETSY were the two COVID-19 plays that Cramer singled out as potential comeback stocks.
He said he was impressed with Pinterest CEO Bill Ready’s management of the company and how he dealt with activist investor Elliott Management’s involvement.
While noting the stock is a buy “right now,” he said, “I think Pinterest’s shift from advertising to e-commerce could be a big story next year.”
Delving on Etsy, Cramer highlighted the ecommerce company’s consistent profitability and solid past two quarters as reasons for the stock rally in recent weeks.
Sellers who joined Etsy during the pandemic have stayed on its site, allaying concerns about the company’s ability to do well in a reopened economy, he added.
When comparisons ease next year, the CNBC host expects much stronger year-over-year growth to kick in.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.