piAt a time when the travel and leisure industry is on pause, the recreational vehicle industry is showing notable signs of strengths as it represents "the perfect COVID vacation," according to CNBC's Jim Cramer.

What To Know

The global COVID-19 pandemic represents a "huge long-term boost" for the RV industry, Cramer said on Tuesday's "Mad Money." This marks a shift from 2018 when the industry had a difficult year highlighted by the outsized supply of vehicles.

But camping is "back in a big way" as consumers avoid hotels and traveling but still want to experience some form of vacation, Cramer said. An RV is the ultimate escape from the pandemic as it allows for social distancing and can travel at the same time.

RV stocks are poised to a selloff as the Street might tie the industry to a longer and deeper than an expected recession, Cramer said. Investors buying into the notion of a long-term boost for the industry should buy some stocks when they sell off.

See Also: 3 Outdoor Stocks To Watch For Summer 2020

What's Next?

Cramer said he wants to "keep an eye" on Thor Industries, Inc. (NYSE: THO) ahead of its earnings report next week. Similarly, Winnebago Industries, Inc. (NYSE: WGO) reports its results on June 17.

"I think you can buy them if they sell off going into earnings, but otherwise, you should withhold judgment, and I do like Camping World Holdings Inc (NYSE: CWH)."

In the meantime, RV stocks are "far from expensive" based on their multiple on next year's earnings, Cramer said. Thor is trading at 20 times next year's earnings and Winnebago at just 17 times.

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