Since the movie “Moneyball” came out in 2011, there has been an increasingly widespread belief that everything boils down to pure numbers. It worked in baseball, surely it must on Wall Street?
Jim Cramer told his Mad Money viewers recently that, on the contrary, investors can miss out by being too focused with the hard numbers. Cramer said that even when it comes to banks and banking, there is a much bigger picture to see than only interest margins and book values.
Cramer described the wealth of information that banks provide about the overall health of the economy. Listening to what the banks had to say this quarter was stunning, Cramer explained. Consumers are flush with cash and are ready to spend, and that means great things for a host of companies.
All of the following stock picks can be found inside the bank earnings conference calls, Cramer said, but only if you're looking for the big picture and not getting hung up on loan ratios and default rates.
Consumers are spending on travel, which is great for American Airlines (AAL) - Get American Airlines Group, Inc. Report and Delta Air Lines (DAL) - Get Delta Air Lines, Inc. Report, along with American Express (AXP) - Get American Express Company Report, Cramer's favorite travel-related financial. Americans also want to look good, which means new apparel from Poshmark (POSH) - Get Poshmark Report and Levi Strauss (LEVI) - Get Levi Strauss & Co. Class A Report.
Looking at what people are using their money for shows that luxury items like the boats Brunswick Corp. (BC) - Get Brunswick Corporation Report makes are in demand. People are flocking to other luxuries at Williams-Sonoma (WSM) - Get Williams-Sonoma, Inc. Report and RH (RH) - Get RH (Restoration Hardware) Report. Finally, people are spending on tech, upgrading their cell phone plans at T-Mobile (TMUS) - Get T-Mobile US, Inc. Report, buying big-screen TVs at Best Buy (BBY) - Get Best Buy Co., Inc. Report or picking up the latest Apple (AAPL) - Get Apple Inc. (AAPL) Report gadgets.
At the time of publication, Cramer's Action Alerts PLUS had a position in AAPL. Learn more about the AAP investment club.