Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday January 2.
2014 Dow Predictions: American Express (NYSE:AXP), AT&T (NYSE:T), Boeing (NYSE:BA), Caterpillar (NYSE:CAT), Chevron (NYSE:CVX), Cisco (NASDAQ:CSCO), Coca-Cola (NYSE:KO), Disney (NYSE:DIS), Dupont (NYSE:DD), Exxon (NYSE:XOM), General Electric (NYSE:GE), Goldman Sachs (NYSE:GS), Home Depot (NYSE:HD), IBM (NYSE:IBM), Intel (NASDAQ:INTC), Johnson & Johnson (NYSE:JNJ), JPMorgan (NYSE:JPM), McDonald's (NYSE:MCD), Merck (NYSE:MRK), Microsoft (NASDAQ:MSFT), Nike (NYSE:NKE), Pfizer (NYSE:PFE), Procter & Gamble (NYSE:PG), The Travelers Companies (NYSE:TRV), UnitedHealth (NYSE:UNH), United Technologies (NYSE:UTX), Verizon (NYSE:VZ), Visa (NYSE:V), Wal-Mart (NYSE:WMT), 3M (NYSE:MMM)
With the Dow diving 135 points on the first trading day of 2014, Cramer looked at the Dow stocks one by one.
American Express (AXP) is short-term overvalued and is currently loved to death. However, it might stay that way and could see $100, but might dip after earnings.
AT&T (T) can go higher if it does nothing at all, but Cramer is not a fan of AT&T, which is trying to embrace new tech, but is being bested by competitors.
Boeing (BA) is just at the beginning of a major aerospace cycle. The Dreamliner can be built faster and more cheaply, and BA should see upside. Cramer puts a price target of $170 on BA.
Caterpillar (CAT) is one of the most hated stocks of the Dow, but should trounce its low expectations when the economy picks up.
Chevron (CVX) may not rally much without a run in oil prices. Cramer thinks if it splits up, CVX should see $140.
Cisco (CSCO) has been reporting weaker numbers, and Cramer doesn't see an end in sight. It could go higher, but it isn't a race horse.
Coca-Cola (KO) has to do something about the consumer shift away from carbonated beverages.
Disney (DIS) reported a good quarter, but the street was not impressed. Its Star Wars franchise should be a hit, and it will likely go higher.
Dupont (DD) is likely to spin off segments and should go much higher.
Exxon (XOM) has huge projects in the pipeline and Warren Buffett has been buying.
General Electric (GE) should spin off its laggard financial segment and concentrate on its industrial business. It could move from $20 to $40 on global growth.
Goldman Sachs (GS) is going to benefit from the Volcker rule. It has suffered unfairly along with other financials, but should see its day in the sun.
Home Depot (HD) will see an uptick because of increasing spending on homes. It has a healthy buyback in place, but it needs to expand a bit more.
IBM (IBM) should restructure, but few trust its estimates. Buffett is buying IBM shares, and it might beat its easy comparisons.
Intel (INTC) is facing challenges of new tech, but its chips are cheap and use less energy. It has a great balance sheet.
Johnson & Johnson (JNJ) has been hurt by sector rotation out of defensive stocks. It should shed its diagnostics segment and focus on its faster growing pharma business.
JPMorgan (JPM) has huge earnings power and may shine in 2014.
McDonald's (MCD) has been hurt by the shift towards healthy eating. However, if it improves just a little bit, its stock price should come back.
Merck (MRK) has become a "smug" pharma. Merck should spin off its animal health division.
Microsoft's (MSFT) new CEO should break up the company.
Nike (NKE) is a master at innovation. The recent quarter was good, although Chinese orders were not strong enough. It is worth buying when it gets hit, because it recovers well.
Pfizer (PFE) has run 22%, but it may tread water in 2014. "Pfizer is a big blah of the Dow."
Procter & Gamble (PG) is picking up speed, although it was dumped along with other defensive stocks. Cramer would not sell PG.
The Travelers Companies (TRV) is a great insurance company that is raising prices and buying back stock. It is getting hurt by its lackluster sector. Cramer thinks TRV could travel from $89 to $100.
UnitedHealth (UNH) was supposed to be hurt by Obamacare, but management is savvy. Cramer thinks UNH is a "win-win" situation.
United Technologies (UTX) should benefit from the revival of construction. It may move from $112 to $135.
Verizon (VZ) has competition, but is likely to go higher.
Visa (V) is one of Cramer's favorite Dow stocks. The street didn't like its previous earnings report, but the bears were wrong. The stock is cheap.
Wal-Mart (WMT) is "the most problematic stock in the Dow." WMT is facing stiff competition and is not well-managed. This "whipping boy of retail" may continue to get punished.
3M (MMM) is growing through innovation, but the stock is not yet reflecting it. This is a research and development powerhouse. Cramer thinks it could go from $138 to $160.
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