CNBC’s Jim Cramer on Wednesday introduced his 2022 outlook for the best-performing shares within the Dow Jones Industrial Common final yr.
Previous to analyzing the blue-chip index, the “Mad Cash” host provided his forecasts for high performers within the S&P 500 and Nasdaq 100 earlier within the week.
“Of all of the shares I’ve coated to this point this week, [the Dow winners] is the group that I believe has the perfect probability of repeating its unbelievable efficiency even with the Fed being your foe, and will probably be led by UnitedHealth, McDonald’s and Walgreens,” Cramer stated.
Cramer stated he believes Residence Depot’s 56% achieve final yr was fueled, partially, by investor optimism on the energy of the U.S. housing market. “The most secure option to play housing is not with a homebuilder, it is with a retailer that caters to each new constructing and renovation,” Cramer stated.
The Federal Reserve’s benchmark rate of interest can influence mortgage charges and, by extension, the housing market general, Cramer stated. “The slower the Fed tightens going ahead, the extra possible Residence Depot can have one other good yr.”
Microsoft is “firing on all cylinders,” Cramer stated, highlighting sturdy efficiency in its cloud unit, PC enterprise and gaming that helped shares rise 51% in 2021. Whereas the inventory is not low cost, Cramer stated he expects the tech large to maintain executing in 2022.
“Microsoft has change into the most important momentum inventory on the planet and I guess it should keep that means as a result of it is bought a behavior of crushing the estimates,” he stated.
Despite the fact that Goldman Sachs shares jumped 45% in 2021, Cramer stated the inventory continues to be on a price-to-earnings foundation.
“In brief, whereas this can be a excellent brokerage and advisory agency, it will get no respect as a result of individuals cannot work out why it would not do one thing extra growth-oriented with its capital,” Cramer stated. “Administration would let you know that it is bought loads of development, however no development inventory sells for lower than 10 occasions earnings.”
Out of all of the shares highlighted on this listing, Cramer stated UnitedHealth Group is the one he believes is most definitely to repeat its sturdy 2021 efficiency this yr.
“Each time I see the inventory rally, I get just a little upset that we do not personal it for the charitable belief, however we’re simply ready for a dip. Sadly, UNH not often offers you one, so perhaps that is the yr we simply swallow our self-discipline and begin shopping for,” Cramer stated.
Cisco shares superior 41% in 2021, however Cramer stated he nonetheless believes the pc networking firm is a purchase. He cited sturdy administration and Cisco’s solidifying place on the planet of information facilities and repair suppliers.
“Its order development is the perfect I’ve seen in ages, and orders are the perfect predictor of earnings within the enterprise,” he stated.
Michael Wirth, CEO of Chevron.
Adam Jeffery | CNBC
“I like the truth that there’s super journey demand … and goes to get higher as soon as [the Covid omicron variant] burns itself via as a result of individuals wish to go someplace. In case you suppose this decade would be the ‘Roaring 20s’ revisited, then American Specific matches that theme completely,” Cramer stated.
Cramer pressured his oft-repeated view that traders ought to personal Apple shares for the long-term, as a substitute of buying and selling out and in of the iPhone maker’s inventory, which superior practically 34% final yr.
Walgreens Boots Alliance
Walgreens is able to have one other good yr after advancing 30% in 2021, Cramer stated. CEO Rosalind Brewer, who took over final yr, has upgraded the corporate’s administration, he stated, and the Covid pandemic supplied the pharmacy chain with some tailwinds.
Cramer stated he believes McDonald’s can replicate its 24% achieve in 2021 once more this yr. “Though I like Chipotle extra … McDonald’s is the extra defensible and defensive title as a result of it could triumph worldwide over any competitor,” Cramer stated.
His recommendation to traders is to “maintain your nostril and do some shopping for, even because it’s already run” as a result of the inventory not often has substantial pullbacks.
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