When oil crashes, everyone watches the energy names. The better question is who quietly saves money when fuel gets cheap. One team just named four firms that do not pump a drop of oil.
Oil fell hard this week after the U.S. and Iran reached a peace deal. U.S. crude dropped to around $81 a barrel, down close to 5%.
That drags down the price of gas and jet fuel. Think of cheap oil like a tax cut nobody had to vote for.
It quietly leaves more cash in the system. That helps firms that burn a lot of fuel, and it helps people filling up their cars.
Gas at the pump tends to fall within weeks. Drivers feel it first, then the rest of the economy does.
The drop ties back to the Iran truce, which calmed fears about Middle East supply. Less war risk means cheaper oil, and cheaper oil touches almost every firm.
Lower oil does not only help energy stocks, since that extra cash tends to show up later in other firms' profits.
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Jet fuel and gas are big costs for many firms. When they fall, profits can rise fast.
Cheaper fuel can also free up cash for buybacks and hiring.
Capital One is a consumer bank, so it rises and falls with how sure shoppers feel. Cheaper gas and cooler prices tend to keep people spending and paying their bills, which is why the Investing Club said it was adding to the stock.
Honeywell makes parts for planes and factories, so lower fuel helps the airlines that buy and fix its engines. Its factory unit gains too as energy firms restart delayed projects, and the stock rose about 4% as it gets set to spin off its aerospace arm on June 29.
Amazon wins on both ends. Cheaper gas leaves shoppers with more to spend online, while lower fuel and shipping costs trim what it pays to run its huge fleet of trucks and vans.
Boeing gains when airlines feel good about the future. Calmer oil prices and easing Middle East tension make carriers more willing to fly and order new planes.
The thread tying these four together is not oil. It is confidence, because cheaper energy cools prices, steadies shoppers, and gets airlines flying.
These are Jim Cramer's Investing Club picks, not a broad call to buy. It is a reminder that the best stocks in a selloff are not always the obvious ones.
Watch oil over the next few days. A signed deal could push prices down even more.
The catch: it all rests on an Iran deal that is not signed yet.
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