Smile for the camera. It's time to look your "selfie best," says TheStreet's Jim Cramer.
As the prevalence of self-snapped photos all but overpowers social media, Cramer offered some top stocks in which to invest as Apple Inc. (AAPL) iPhone cameras rapidly increase photo quality.
First is makeup manufacturer Estee Lauder Companies Inc. (EL) . The 71-year-old company is a better pick than its competitors such as e.l.f. Beauty (ELF) because it's got a solid handle on just what drives its revenue, Cramer said at TheStreet's Financial Success Strategies teach in on Oct. 28.
"[CEO] Fabrizio Freda is the first man to explain to me, he goes, 'What are the three things that the millennials will pay out for?' And I didn't know," Cramer said. "And he said, 'okay, they'll pay for Apple...They'll pay up for Uber, and they'll pay up for makeup.' And they have to pay up for makeup [with] every single new Apple iPhone iteration, because the resolution of the screen," Cramer said.
Judging by Estee Lauder's results, it's already benefiting from the selfie generation.
For the fiscal year ended June 30, 2017, Estee Lauder's sales and earnings rose 5% and 13%, respectively.
Estee Lauder is a better pick than chain beauty retailer Ulta Beauty Inc. (ULTA) , Cramer said. While Ulta is down about 100 points from its 52-week high, Estee Lauder has had a "remarkable run." Estee Lauder's stock has gained an impressive 46% since the start of the year.
The New York-based makeup company is also a smarter pick than e.l.f. Beauty Inc., Cramer added, as CEO Tarang Amin has been unable thus far to "get the company to be in the big mass channels." One space to avoid in the space is definitely Revlon (REV) .
According to S&P data, Revlon's debt tumbled into distressed territory on Friday after a much worse than expected third quarter.
"The declines in the U.S. can be attributed to the continued migration of consumers to specialty beauty retailer, online purchasing, store closures, inventory reductions among several mass retail partners, incremental adjustments to return and markdowns and inventory rebalancing with select salon distributors," Revlon CEO Fabian Garcia told analysts on an earnings call.
Aside from makeup, selfie snappers must flash straight pearly whites, Cramer noted. That's why he's a fan of Align Technology Inc. (ALGN) . As overall dental health improves with younger generations, Cramer said, dentists are driving revenue by suggesting Invisalign braces for all ages, not just teenagers.
"I don't like to chase stocks, but Align Technology is the real deal," Cramer said of the California-based Invisalign manufacturer. He thinks Align's stock will "continue to go higher."
Invisalign can cost as much as $271 per month, and many users have to wear the braces for about one year. The treatment also includes check-ups at the dentist every six weeks, which is surely welcome news for the orthodontically trained who are looking to cushion their bottom line.
Align Technology is up a whopping 145% since the start of the year.