CNBC's Jim Cramer said Wednesday he spotted "instant winners" after months-long travel restrictions in China's Hubei province were removed.
Wuhan, the Hubei city where the coronavirus pandemic originated in December, is trying to find a new normal in the wake of an 11-week quarantine that closed the capital for business.
"With the opening of Wuhan last night," the "Mad Money" host said, "it's a whole new ballgame for the second largest economy in the world. We're already seeing some instant winners."
Cramer laid out a diversified basket of companies that spans the freight, technology, construction, restaurant and apparel industries. Below are his thoughts on each pick:
UPS and FedEx: "UPS and FedEx spent fortunes building out giant hubs in China. Their stocks are roaring here, but they still aren't up enough."
Apple: "I'm salivating over the idea that people will lap up Apple's 5G phone when a rejuvenated China lines up for the darned thing," Cramer said. "With China coming back, and Apple's service revenue stream getting a big boost from a locked down America, this stock suddenly seems pretty darned attractive, to me."
Skyworks Solutions and Broadcom: "Skyworks Solutions and Broadcom are both fabulous plays on a China comeback. I think their telco chips will be very strong in the second half."
Nvidia: "They have a ton of Chinese business. Who knows, maybe the Chinese government will finally bless their Mellanox acquisition … something that make the stock spike immediately."
Caterpillar: "Caterpillar's running because the Chinese Communist Party has spent fortunes on economic stimulus and they need CAT's machines. These days Caterpillar's more levered to oil than to China, but I think the stock's still a winner on any Chinese resurgence."
Nike: "When you get out of lockdown, you want to splurge, like with a pair of Nikes. I was on the fence about this one with the Olympics postponed, but now you've got China as a second half story and the Olympics next year."
Disclosure: Cramer's charitable trust owns shares of Apple and Broadcom.
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Source: cnbc.com