Jim Cramer: buy these stocks to play China reopening
- China is easing COVID restrictions after two months of lockdown.
- Cramer reveals stocks investors can buy to play China reopening.
- All of his stock picks are currently trading at a deep discount.
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China is easing COVID restrictions after two months of lockdown, which, as per Jim Cramer, warrants buying a bunch of U.S. stocks.
Cramer says Nike Inc will benefit
Copy link to sectionA name that particularly pops out to him is Nike Inc (NYSE: NKE) that gave somewhat of a downbeat guidance last night. Still, Cramer said on CNBC’s “Squawk on the Street”:
Nike is doing underpromise, overdeliver. I believe they’ll have an outstanding next three months in China. They have the right inventory too. I think people selling Nike Inc here are going to regret it. It’s very rear-view.
Even with China in lockdown, the sports apparel and footwear company reported better-than-expected results for its fiscal fourth quarter. Wall Street, on average, sees a 35% upside in Nike shares.
Cramer recommends buying Disney
Copy link to sectionAnother big cap name that Cramer is convinced will benefit from China coming back online, is the Walt Disney Co (NYSE: DIS) that’s down just under 40% versus the start of 2022. He said:
Chinese have been locked up. I think they’re pent up to go out. They want to go to the Disney World. Chapek is a parks guy. Disney right now is the most hated stock in the world and yet that’s the one I think could be the best.
The multinational’s Disneyland in Shanghai is set to reopen this Thursday. A few of the other names Cramer likes to play “China” right now include Starbucks and Yum China.
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