Jim Cramer of CNBC highlighted six stocks of travel and leisure space on Monday that he believes are affordable and investable for growth potential.

“With [Federal Reserve] Tightening [interest rates], The market prefers growth at a reasonable price, or what is called GARP. … In other words, as long as the stock price is relatively low, we need a company that grows faster than average. “Flirt“The host said.

“According to GARP, get used to the world. It’s an old, new way of investing,” he added later.

The Federal Reserve Board approved a 25 basis point rate hike in March. This is expected to be the first of several hikes this year to curb soaring inflation. Minutes of the Fed’s March meeting announced on April 6 The Federal Reserve Board We may raise interest rates by 50 basis points at upcoming meetings. The Federal Reserve also plans to reduce its balance sheet by about $ 95 billion a month.

To create a list of investable travel and leisure stocks, Cramer first screened S & P 500 companies that could generate double-digit profit growth this year and next year. Next, Cramer looked at a multiple of a company’s price-earnings ratio, the PEG ratio. “This is an indicator of how much we are willing to pay for a company’s growth rate … When talking about rational valuations, things below 1 are generally cheaper. It will be considered, “he said.

We narrowed down the list of companies using two metrics, leaving 51 names for Cramer.

“We will go through our favorites throughout the week,” Kramer said. He added that he believes that the travel and leisure stocks he chooses “will benefit from a major reopening, even if the Fed really puts a brake on the economy.”

Here are the Cramer’s choices for the six “GARP-iest” travel and leisure companies:

  1. Expedia
  2. Booking Holdings
  3. Marriott International
  4. Disney
  5. Darden Restaurant
  6. Cisco

Disclosure: Cramer’s Charitable Trust owns a stake in Disney.

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