Jim Cramer breaks down his favorite stocks from a record second quarter

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CNBC’s Jim Cramer on Tuesday reviewed the top winning stocks of the past three months after the second quarter, which was defined by the push-pull effects of the ongoing pandemic and economic recovery, came to a close.

“I’d say the most impressive stocks from my point of view … from the last three months were the ones with a lot of ingenuity and a lot more good luck,” the “Mad Money” host said. “We had tons of winners this quarter.”

The major averages climbed one more time to finish off the month of June, which led Wall Street to its best quarterly performance in recent decades, despite lingering economic fallout from the coronavirus lockdown and the initial rout in global financial markets.

The Dow Jones added 217.08 points, or 0.85%, to finish at 25,812.88. The 30-stock index rallied 17.77% since the start of the quarter, according to Factset.

The S&P 500 rose 1.54% during the session to 3,100.29, a nearly 20% gain for the quarter.

The Nasdaq Composite, which set multiple record highs throughout the month, climbed 1.87% to 10,058.77, more than 30% higher from the beginning of April.

“There are a ton of other winners I could’ve cited, but these are the companies that grabbed the moment by the horns and rode the bull to greatness,” Cramer said. “And with Covid spreading like wildfire, sadly, I bet these keep climbing, or I wouldn’t have picked them.”

Zoom Video

Shares of Zoom Video rocketed 73.5% higher in the April-June period, according to FactSet.

“It’s incredible to me that this newly pubic company has become so ingrained in the new work-from-home economy and also play-at-home economy,” Cramer said. “Zoom has fundamentally changed the way we interact and our world will never be the same, even after we get a vaccine.”

PayPal

PayPal stock rallied 82% during the quarter.

“PayPal shows you really don’t need brick and mortar banks,” he said. “I never would’ve thought we’d go from cash to plastic to digital this quickly, but the pandemic threw more fuel on the fire and that’s where we are.”

Apple

Apple, a stock that Cramer stresses investors must buy and never traded, climbed 43.5% during the quarter.

“The real core of this story is Apple’s rapidly growing service revenue stream,” he said. “in an era where we’re not supposed to touch each other, Cook’s rolled out a contactless credit cards. I think the App Store is worth billions.”

Tesla

Tesla shares rallied more than 106% in the quarter.

“They’re really the only truly successful electric vehicle company,” Cramer said. “Once it became clear that [CEO Elon] Musk could raise as much money as he needed to keep expanding … the stock was off to the races and it hasn’t looked back since.”

Shopify

Shopify shares gained more than 127% during the last three months.

“At the beginning of the quarter, Shopify was an obscure e-commerce enabler. By the end, though, they were recognized as a pillar of digital infrastructure in a time when everybody needs to go digital,” he said. “I bet Shopify will create more millionaires than any other company in America, and they’re Canadian.”

Twilio, Fastly, Adobe, Wix and Etsy

Twilio, Fastly and Etsy all saw their shares surge triple digits last quarter with Fastly, a cloud content management company, putting up an outsized gain of 348.52%. Adobe stock rose almost 37% during the same quarter.

Twilio, Fastly, Adobe and Wix.com “empower small business” and “help smaller operators move things online,” Cramer said. Etsy has “prevented a lot of retailers from going under.”

Lululemon

Lululemon shares rose 64.61% quarter to date.

“This is Lululemon’s moment. They captured the zeitgeist of what you wear when you [work out] at home,” Cramer said. “The Mirror acquisition gives them a piece of the home fitness space and lets them rival Peloton.”

Nvidia

Nvidia stock rallied 44% last quarter.

Nvidia is the one company that’s tied to “all sorts of powerful secular themes tied into the stay-at-home economy,” he said. “That’s everything from the data center to artificial intelligence to gaming.”

Netflix

Netflix watched its stock climb 21% during the quarter.

“This is another company that, like Amazon, was practically tailor-made for the pandemic,” Cramer said. “This one’s had a lot of doubters thanks to all these competing streaming services, but now the company’s in a place where it can raise prices with little resistance.”

Regeneron Pharmaceuticals

Regeneron Pharmaceuticals shares rallied more than 27% last quarter.

“Regeneron’s leading the way … in the fight against the pandemic,” he said. The company has the “inside track when it comes to making a vaccine, given their work on Ebola. You should know that Len Schleifer and George Yancopoulos, the CEO and the chief scientist, are unheralded geniuses. Len was our first guest on ‘Mad Money.’ The stock was at $5. It’s now at $623 and it’s not stopping.”

Disclosure: Cramer’s charitable trust owns shares of Apple.

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