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On a day where terrorism once again dominated the headlines, investors might have expected a bigger slide in the stock market. But sadly, as these events become all too common, less and less panic grips the markets, leaving only the travel stocks lower by the end of the day.
Cramer said he saw prices being propped up by buying in the health care space, where prices have gotten so low many investors are willing to roll the dice. There was also strength in the oil patch for the same reason. Meanwhile, in technology, no news is good news and many tech giants keep marching higher.
Cramer said the term for this buying on weakness is the "underlying bid," and it was out in force on what otherwise would have been a very somber day.
Travels With Cramer
With the entire travel and leisure sector pulling back today, Cramer said it's smart to consider owning some of these stocks as long as you pick the right ones. He said as past terrorist attacks have shown us, there's a predictable pattern in this sector. The travel stocks always rebound from their lows.
But that doesn't mean that every travel stock is a buy. Cramer said he remains bullish on the airlines, especially with Southwest Airlines (LUV) trading at just 9.8 times earnings. He was also positive on the online travel stocks like Priceline (PCLN) and Expedia (EXPE) , which are also great values.
When it comes to the cruise lines, however, Cramer said there's another issue at play: the mosquito-borne Zika virus. With the Zika outbreak only just beginning and the Caribbean expected to suffer the worst of it, Cramer said it's too early to estimate what the virus will do to cruise line bookings. So far, there's been no impact, but that could change quickly as news of the virus spreads over the warm summer months.