Cramer's 2015 Dow Predictions and Stock Picks

Strategic Insights -

Jim Cramer, a renowned stock picker and Wall Street analyst, believes the Dow Jones Industrial Average will continue its upward trend in 2015, predicting a gain of 10%-11% for the year. He attributes his optimism to the potential growth of stocks like Intel (INTC) and UnitedHealth (UNH), which led the Dow in 2014 with gains of 30%. Cramer is particularly positive about Intel, citing the company's shift in strategy since CEO Brian Krzanich took over, focusing on cutting capital expenditures and improving profitability.

Cramer also highlighted several other stocks that he thinks will perform well in 2015, including Home Depot (HD), Chevron (CVX), and Merck (MRK). He expressed concerns about IBM (IBM), citing the company's struggling business and the potential for it to be the worst performer in the Dow if it fails to adapt to changes in the market. Additionally, Cramer thinks international companies like 3M (MMM) will face challenges due to the strong US dollar, but notes that their yields will provide a buffer.

Key Takeaways:

  • Cramer predicts the Dow will gain 10%-11% in 2015.
  • Intel (INTC) and UnitedHealth (UNH) were the leaders in the Dow in 2014, with gains of 30%, and Cramer sees them leading again in 2015.
  • Cramer believes Intel's shift in strategy under CEO Brian Krzanich will lead to significant growth.
  • Home Depot (HD) could have a stellar year again, according to Cramer.
  • Chevron (CVX) has a strong dividend, but Cramer notes that Royal Dutch Shell (RDS.A) has a better dividend, which has not helped its stock.
  • IBM (IBM) faces a "real crisis" and Cramer questions the company's business strategy.
  • International companies like 3M (MMM) will be challenged by the strong US dollar, but their yields will provide a buffer.
  • Cramer thinks Merck (MRK) and Johnson & Johnson (JNJ) will see upside in the coming year.
  • Goldman Sachs (GS) is severely undervalued on a price-to-book basis, according to Cramer.

Statistics:

  • The Dow gained approximately 10% in 2014.
  • Intel (INTC) and UnitedHealth (UNH) both gained 30% in 2014.
  • Cramer predicts the Dow will gain 10%-11% in 2015.
  • The US dollar is strong, potentially posing a challenge to international companies like 3M (MMM).
  • IBM (IBM) has a market capitalization of over $200 billion.
  • Merck (MRK) and Johnson & Johnson (JNJ) both have market capitalizations over $300 billion.

Sources:

  • "Cramer: Oil, Consumer Confidence, Higher Employment to Aid in 2015" (http://www.thestreet.com/video/12999747.html?utm_source=inlinespeeddesk&utm_medium=TSC&utm_campaign=inlinespeeddesk)
  • TheStreet Quant Ratings (http://secure2.thestreet.com/cap/prm.do?OID=027697)