CNBC host Jim Cramer has picked stocks of companies such as Apple Inc. AAPL, Ford Motor Company F and Amazon.com Inc. AMZN among the five “low-effort” stocks that can be bought by retail investors “in a good environment.”
What Happened: Cramer also highlighted big-box retailer Costco Wholesale Corp. COST and apparel retailer American Eagle Outfitters Inc. AEO as stocks that can be bought by retail investors as a perfect fit for a “lazy, lower-homework portfolio.”
“In this environment, you don’t want to invest too much time and effort. You just want to go for stocks of companies you know and love, because if they get hit … you’ll have the confidence to buy more into weakness,” the “Mad Money” host said.
Why It Matters: Ford and American Eagle Outfitters have outperformed the S&P 500 by a wide margin so far this year. Ford’s year-to-date returns stand at 69.6%, while American Eagle Outfitters shares have gained 79.7% year to date. In comparison, the S&P 500 Index has gained 13% so far this year.
Cramer believes that easing of the semiconductor shortage will help Ford to “pump out new cars and trucks the way it should.” Ford said in early June that its electrified vehicle sales grew 184% in May.
Costco’s memberships are set to grow, while American Eagle Outfitters is a retailer with 26 consecutive quarters of double-digit growth, Cramer noted. Apple is the most valued tech company.
Price Action: Apple shares closed almost 1.3% higher in Tuesday’s trading session at $133.98, while Amazon shares closed 1.5% higher at $3,505.44.
Ford shares closed almost 0.9% higher at $14.91, while Costco shares closed almost 1.4% higher at $392.18 and American Eagle Outfitters shares closed 4.3% higher at $35.91.
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