Jim Cramer likes shares of Etsy and Enphase after both have fallen more than 50% from highs

"Mad Money" host Jim Cramer said on Wednesday's show that he believes shares of Etsy and Enphase have fallen to buyable levels. Sign up and learn more about the CNBC Investing Club with Jim Cramer https://cnb.cx/3Ei22n4

CNBC’s Jim Cramer on Wednesday offered a list of beaten-up stocks that he believes are now cheap enough to buy.

All the stocks are in the Russell 3000 and meet the following criteria decided upon by the “Mad Money” host: down more than 50% from the highs and selling for less than 50 times earnings. They also must clear a minimum market capitalization requirement.

“In other words, we want huge discounts, but we also want quality companies that are actually profitable, meaning their stocks got cheaper as they went lower,” Cramer said. “After this seemingly non-stop pummeling, we finally have a bunch of stocks that are cheap enough to buy,” he added.

Market caps of $10 billion or more

Eleven companies worth $10 billion or more meet Cramer’s criteria: Moderna, Zoom Video, Biogen, Twitter, Rocket Companies, ViacomCBS, Pinterest, Etsy, Discovery, Enphase and Clarivate.

Cramer said he likes Etsy as a play on e-commerce and Enphase in the solar industry. “I think those are actually buys,” he said. He added that he thinks Twitter is “really interesting” and Pinterest may be a buy but it needs some time.

Market caps between $5 billion and $10 billion

Ten firms valued between $5 billion and $10 billion passed the Cramer benchmark: AVIS Budget, UWM Holdings, Upstart, Penn National, Maravai Lifesciences, Gap, Altice USA, Playtika Holding, Novavax and Boston Beer.

Cramer said to stay away from most of those stocks right now, including UWM Holdings, Penn National and Novavax.

Financial technology player Upstart, on the other hand, may have gotten ahead of itself last year, Cramer said. “I don’t know if it’s cheap [at] 43 times earnings, but they’re real ... so we’re going to stick with that,” he said.

Market caps under $5 billion

There are 89 companies that meet Cramer’s criteria of being down more than 50% from the highs and trading at less than 50 times earnings. Cramer only spoke of the stocks he finds intriguing, including digital apparel retailer Revolve Group, which he thinks has been “unfairly punished” despite the fact its most recent quarter was strong.

He also mentioned Bed Bath & Beyond and Ollie’s Bargain Outlet, suggesting retailers “could all be worth more than we think” in light of Kohl’s receiving two takeover bids.

Cramer said he bets automotive tech supplier Cerence “bounces back” as the semiconductor crunch eases and vehicle production ramps up.

Torrid, a direct-to-consumer brand with a focus on plus-sized apparel, “could be a winner,” Cramer said, noting the company’s stock trades just above $8 even though it expects to earn about $1 per share this year.

» Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision
» Subscribe to CNBC: https://cnb.cx/SubscribeCNBC

Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide.

The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-news-with-shepard-smith-podcast.html?__source=youtube%7Cshepsmith%7Cpodcast 
 
Connect with CNBC News Online
Get the latest news: http://www.cnbc.com/
Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC
Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC
Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC
Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC

https://www.cnbc.com/select/best-credit-cards/ 

#CNBC
#CNBCTV