Why Jim Cramer Thinks These Stocks Are Benefiting From Consumer Spending

The S&P 500 and Dow Jones industrial average edged higher on Wednesday, but there are still concerns throughout the market about inflation. While Federal Reserve Chair Powell believes inflation is “transitory,” many investors don’t share his outlook, and the rotation trade to cyclicals has been pronounced over the past week. All this makes for a stock picker’s market, and who better to pick these stocks than CNBC’s Jim Cramer.

Cramer has been a force in the market for years, dishing out advice and analysis to savvy investors. He makes no bones about how he encounters the market with well-founded technical and fundamental analysis at a level to which many a trader and investor aspire.

It is no secret that Cramer has not just been a fount of breaking news surrounding everyone’s favorite stocks and companies, but he also actively engages and encourages more people to get their money to work for them via smart investing. With the recent surge in meme stocks and interest in cryptocurrencies, Cramer has shifted and grown with the times. He even has investment strategies on the cutting edge.

Cramer has maintained a popular show on CNBC for years now. Many people watch Mad Money to make sense of the daily market moves. He also runs the popular finance website TheStreet.com. Furthermore, you can see him make cameos on other shows over the course of the trading day on CNBC. When not on the air, you can find him on Twitter, dishing out even more knowledge.

24/7 Wall St. has compiled and distilled some of Cramer’s top picks and analysis here.

Cramer led off Mad Money on Wednesday saying don’t miss the forest for the trees. He focused on bank earnings. When investors look at this, they see net interest margins and book values, but they miss the wealth of information that banks give in terms of their commentary on the economy as a whole, says Cramer. One thing that this data has shown is that people are flush with cash and ready to spend it.

One way that consumers are spending is on travel. Airline stocks like American Airlines Group Inc. (NASDAQ: AAL) and Delta Air Lines Inc. (NYSE: DAL) and even American Express Co. (NYSE: AXP) could see a boost from this consumption. Another derivative of the travel trade is some apparel stocks, because people want to look good when they travel. Cramer pointed to Poshmark Inc. (NASDAQ: POSH) and Levi Strauss & Co. (NYSE: LEVI) for this aspect of the trade.

Another way that consumers are spending their cash is on luxury items. Cramer has a few ideas here. Boats are seeing a rise in demand, so companies like Brunswick Corp. (NYSE: BC) should benefit. Other ideas were William-Sonoma Inc. (NYSE: WSM) and RH (NYSE: RH). Lastly, people are spending more money on tech and upgrading their cell phone plans, so companies like T-Mobile US Inc. (NASDAQ: TMUS) and Best Buy Co. Inc. (NYSE: BBY) could see a bump as well.

For the Lightning Round, Cramer kicked off with a couple short buys. On Renewable Energy Group Inc. (NASDAQ: REGI), he offered, “I say buy.” On Altimeter Growth Corp. (NASDAQ: AGC), he said, “I think that one’s actually a good one.”

Cramer didn’t have too much to say on Hercules Capital Inc. (NYSE: HTGC), but he has plans for analysis later: “I’m going to look into that for you because it’s got a 7% yield. … We will have to come back and analyze the balance sheet of them before I make a decision.”

Jimmy Chill zeroed in on Affirm Holdings Inc. (NASDAQ: AFRM): “I was stunned yesterday when Apple said it might do buy now, pay later, then suddenly Affirm went down. I mean, Affirm is a good company, for heaven’s sake. It’s starting to really bug me … I am a buyer at the $56 level.”

Cramer ended with Barrick Gold Corp. (NYSE: GOLD): “It’s Mark Bristow. It’s really hostage to gold. Gold peaked. I like it. I think you should own it.”

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