Cramer says to start buying these 'bargain basement stocks' now before omicron fears pass

CNBC’s Jim Cramer said Wednesday investors should start to nibble on some beaten-down stocks after the market slid following news of the first case of the Covid omicron variant in the U.S.

“For days I’ve told you we were waiting for the other shoe to drop and it just hit today, but, in this market, a shoe doesn’t drop in a day,” the “Mad Money” host said, explaining he believes coronavirus worries will take a bite out of the major U.S. equity averages again.

“If you wait too long to buy these bargain-basement stocks and omicron becomes nothing more than a running nose for the vaccinated — even as the unvaccinated exercise their God-given right to hospitalization and death — I think you’ll look back and kick yourself for missing some of these obvious buying opportunities,” Cramer said.

Here are four stocks owned by Cramer’s charitable trust that he believes long-term investors should look at buying at these levels.

“Right now, Disney’s being held down by the omicron variant and disappointing subscriber numbers for Disney+. …This stock won’t stay horrible forever,” Cramer said on the same day Disney hit a fresh 52-week low of $142.04 per share.

That’s because Disney is an “iconic company,” Cramer said, describing it as a “broken stock,” not a broken company. “You really want to tell me they can’t fix Disney+ by offering something new? That’s absurd,” he said. “They might not even need something new — the ‘Mandalorian’ comes back next year.”

“I know some sellers are motivated by PayPal’s not-so-hot chart. I’m motivated by the fact that the stock’s down 131 points from its $310 high,” Cramer said. “It would be one thing if the franchise were falling apart, but the next quarter is the last time PayPal will be weighed down by its overhang of its eBay-affiliated past. Again, it’s a buy.”

Even though Mastercard recently boosted its share purchase program by $8 billion and hiked its dividend by 11%, Cramer said the payments processor’s stock is being hurt by concerns of a slowdown to international commerce thanks to the omicron variant.

“I know these payments stocks are hated here. I don’t think Mastercard’s quite ready to bottom at these levels, but it’s a lot closer to the bottom than it was a few months ago,” he said.

Shares of the casino operator are down nearly 50% from their 52-week high earlier this year, putting its market capitalization at $8.8 billion as of Wednesday’s close.

“That’s way too low given their properties [in Las Vegas and Macau],” Cramer said. “I think this company could easily be acquired by an MGM or Las Vegas Sands — they know the physical properties and the brand are best in show. Believe me, the insiders would be delighted to cash in.”

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