CNBC’s Jim Cramer on Tuesday pointed to a handful of stock ideas that will take little effort to research, understand and follow the underlying companies.
He highlighted automaker Ford, big-box retailer Costco, apparel retailer American Eagle Outfitters, internet giant Amazon and tech products maker Apple as “low-effort” stocks that individual investors can get behind without having to take on a high load of homework.
“That’s what you buy in a good environment. … In this environment, you don’t want to invest too much time and effort,” the “Mad Money” host said. “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.”
As of Tuesday’s close, two of the five stocks mentioned are outperforming the S&P 500 this year by a wide margin.
American Eagle Outfitters shares have surged nearly 79% year to date, while Ford is up about 70% over that time period. The S&P 500 has gained 13% from the start of 2021.
Amazon has advanced more than 7% in 2021. Costco climbed 4% in that same timeframe. Apple has been a laggard, gaining just under 1% year to date.
Disclosure: Cramer’s charitable trust owns shares of Apple, Amazon, Costco and Ford.