Today’s topic is revised “Cramer’s Covid-19 Index”. It was originally introduced in his show, Mad Money w/ Jim Cramer, in April 2020. The Index consists of about 100 stocks that are expected to perform well even under the Coronavirus pandemic. This article relates to revised version which is published in May 2020.
1. Backgrounds and Notes
It is well known that due to the spread of the coronavirus, business sectors are divided into two groups: business sectors whose business have been hit hard such as travel industries, energy industries and those that have suffered relatively little or that have been benefited.
It seems Jim Cramer reached a theory that at this point it is better to invest to group of industries that has been receiving little or no impact from Coronavirus pandemic, rather than 500 S&P Fund which encompass both groups. And from this perspective, he announced “Cramer’s COVID-19 Index” in his April 27, 2020 episode. The Cramer’s COVID-19 episode consists of around 100 stocks (17 sectors) whose prices have been rising, or expect to rise further.
In the May 26, 2020 Episode, “Cramer’s COVID-19 Index” has been revised. Therefore, I would like to explain such revision.
Please note that this article does not intend to say that it is the time to buy the stocks mentioned here, as the prices of some of the stocks listed in the index might be already risen too high. Please make individual decisions regarding when to buy any stocks. Also, please understand that this article does not recommend investments in any particular stock.
2. Revised Version of “Cramer’s COVID-19 Index” (from May 26, 2020 Mad Money episode）
2.1 COVID-19 Index (May 2020, Revised Ver.)
Following table contains name of stocks which consist the COVID-19 Index. As mentioned earlier, ten stocks were replaced in May 26, 2020 Mad Money episode. Stocks newly added in May 2020 are shown in bold letter in the below table. （During the May 26, 2020 episode, there was no discussion regarding to which sectors each of new stock should belong. Therefore, assignment to each sector are made based on my judgement.)
|Sector||Company Name（Ticker Symbol）|
|Beverages||PepsiCo (PEP), Boston Beer (SAM)|
|Cloud software||Salesforce (CRM), Adobe (ADBE), Zoom Video (ZM), RingCentral (RNG), Slack (WORK), CrowdStrike (CRWD), Okta (OKTA), Zscaler (ZS), Cloudflare (NET), Coupa Software (COUP), DocuSign (DOCU), Everbridge (EVBG), Veeva Systems (VEEV), Twilio (TWLO)|
|Consumer packaged goods||Clorox (CLX), Colgate-Palmolive (CL), Procter & Gamble (PG)|
|E-commerce||Chewy (CHWY), EBay (EBAY), Shopify (SHOP), Prologis (PLD)|
|Financials||MarketAxess (MKTX), Tradeweb (TW), Square (SQ), PayPal (PYPL), S&P Global (SPGI)|
|Video games||Activision Blizzard (ATVI), Electronic Arts (EA), Take-Two Interactive (TTWO)|
|Home entertainment providers||Netflix (NFLX), Spotify (SPOT), Akamai Technologies (AKAM), The Trade Desk (TTD)|
|Health care||Abbott Laboratories (ABT), AbbVie (ABBV), Centene (CNC), UnitedHealth Group (UNH), Gilead Sciences (GILD), Regeneron (REGN), Sanofi (SNY), Danaher (DHR), Thermo Fisher (TMO), Eli Lilly (LLY), Baxter (BAX), DexCom (DXCM), GlaxoSmithKline (GSK), Johnson & Johnson (JNJ), Masimo (MASI), Perrigo (PRGO), Pfizer (PFE), ResMed (RMD), Zoetis (ZTS), Emergent BioSolutions (EBS)|
|Mega-cap technology||Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT)|
|Samll-cap tech||Citrix Systems (CTXS), Logitech (LOGI), DataDog (DDOG), Splunk (SPLK), Wix.com (WIX), Palo Alto Networks (PANW)|
|Packaged food||Campbell Soup (CPB), Conagra (CAG), General Mills (GIS), Hormel (HRL), J M Smucker (SJM), Kellogg (K), McCormick (MKC), Mondelez (MDLZ)|
|REITs||American Tower (AMT), Crown Castle (CCI), CoreSite Realty (COR), Equinix (EQIX)|
|Restaurant survivors||Chipotle (CMG), Domino’s Pizza (DPZ), Wingstop (WING)|
|Retail survivors||Costco (COST), Walmart (WMT), Dollar General (DG), Home Depot (HD), Target (TGT)|
|Semiconductors||Advanced Micro Devices (AMD), Nvidia (NVDA), Marvell Technology (MRVL)|
|Safety stocks||Dominion Energy (D), Verizon (VZ)|
|‘Exotics’ (Catch All)||BioNTech (BNTX), Moderna (MRNA), Livongo (LVGO), Teladoc Health (TDOC), Barrick Gold (GOLD), Beyond Meat (BYND), Peloton (PTON), Etsy (ETSY), Chegg (CHGG)|
(1) April 27, 2020 episode (Original COVID-19 Index)：Jim Cramer reveals his ‘Mad Covid-19 Index’ of stocks for this ‘tricky environment’ (https://www.cnbc.com/2020/04/27/jim-cramer-mad-covid-19-index-of-stocks-to-invest-in-this-tricky-environment.html）~
(2) May 26, 2020 episode (Revised COVID-19 Index)：Jim Cramer shakes up his Cramer Covid-19 Index: Wall Street is ‘more confident’ about a recovery (https://www.cnbc.com/2020/05/26/cramer-shakes-up-his-covid-19-index-wall-street-is-more-confident.html)
2.2 Original COVID-19 Index
The article below explains original COVID-19 Index which was introduced in April 27, 2020 Mad Money episode as well as its predecessors, Stay-at-Home stocks.
2.3 Revisions made from April 2020 Version
Below is a list of Covid-19 Index stocks which were replaced in the May 26, 2020 Mad Money episode.
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