Cramer's 'Mad Money' Recap: Bet on the Thoroughbreds

Tickers in this article: AA AAPL AMRN AXP BA BAC BDX CAT CHS CLWR CSCO CVX DD DDD DIS FB FDO GE GEO GLD GPS HAIN HD HPQ HRL IBM INTC JAH JNJ JPM JWN KEY KO LNG MAKO MCD MDT MRK MSFT NSR P PFE ROST S SBUX T TGT TRV UL UNH URI UTX VLO VZ WFC WFM WLL WMT XOM
Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener .


NEW YORK ( TheStreet) -- The dogs will remain dogs, but the thoroughbreds are still worth betting on. That was Jim Cramer's assessment of the Dow Jones Industrial Average going into 2013.

Cramer told his "Mad Money" viewers Thursday that 2013 should be a lot better than 2012 for the Dow, and he gave a quick assessment of all the Dow stocks to show why.

Starting from the best performers in 2012, Cramer said that Bank Of America (BAC) remains cheap, despite its 108% gain last year. Bigger gains will come, he said, as the housing recovery continues. Home Depot (HD) continues to take market share, which makes that stock a winner as well.

Cramer said that Walt Disney (DIS) can extend its 32% rally last year thanks to strong attendance at its parks and strong entertainment properties. And while he's not as bullish on JPMorgan Chase (JPM) , American Express (AXP) and Travelers (TRV) , Cramer expects all three to still have a good 2013.

Cramer was also bullish on General Electric (GE) , a stock he owns for his charitable trust, Action Alerts PLUS, along with Pfizer (PFE) , 3M (MMM) and United Technologies (UTX) , all stocks he said should be able to at least match last year's slow-growth performance.

His only bearish call in the slow-growth group, Wal-Mart, in the face of a weaker U.S. consumer going into 2013.

Cramer said AT&T (T) will allow investors to sleep at night, while Cisco (CSCO) should see its shares rise in 2013. Meanwhile, Merck (MRK) needs a big catalyst to match its 8.6% performance last year and Cramer doesn't see one.

He felt Verizon (VZ) will likely play catchup this year, while United Healthcare (UNH) will do poorly without job creation.

Then there were the dogs of the Dow, the under-performers. Cramer was bullish on Johnson & Johnson (JNJ) and IBM (IBM) , another Action Alerts PLUS name, and felt that Coca-Cola (KO) should be able to beat its 3.6% gain in 2012, as should Boeing (BA) given the aerospace cycle. His only worry is Microsoft (MSFT) , a stock he said is "hard to love."

Cramer was lukewarm on Exxon Mobil (XOM) and Chevron (CVX) , but gave Chevron, an Action Alerts PLUS name, the edge. He was bearish on Alcoa (AA) and DuPont (DD) and said he doesn't trust McDonald's (MCD) .

Cramer made an exception for Caterpillar (CAT) , calling that dog of the Dow undervalued, but rounded out the group by saying that Intel (INTC) will likely remain flat in 2013 and the worst performer, Hewlett-Packard (HPQ) could only save the averages by being booted from them, even with it's 44% loss for 2012.

Executive Decision

Usage of this site is governed by TheStreet's Terms of Use available here. Information collected on this site may be collected by TheStreet and OC Register. TheStreet's use of information collected on this site will be governed by TheStreet's privacy policy available here. OC Register's use of information collected on this site will be governed by OC Register's privacy policy available here. If either TheStreet's or OC Register's privacy policy have provisions that are more restrictive than the provisions of the other party's privacy policy, such more restrictive provisions shall not apply to such other party.

Copyright © 2012 Orange County Register Communications. All Rights Reserved.
Site Help | Site Map