On Wednesday, CNBC’s Jim Kramer announced his 2022 forecast for the best performing stock in the Dow Jones Industrial Average last year.
Before examining the blue-chip index, the Mad Money host presented his predictions for the top performers in the S&P 500 and Nasdaq 100 earlier this week.
“Of all the stocks I reviewed this week, [the Dow winners] “This is the group that I think has the best chance of repeating its incredible results even though the Fed is your enemy and will be led by UnitedHealth, McDonald’s and Walgreens,” Kramer said.
Kramer said he believed The 56% gain last year was driven in part by investor optimism about the strength of the US housing market. “The safest way to play housing is not with a home builder, but with a retailer who serves both new builds and renovations,” Kramer said.
The Federal Reserve’s base interest rate could affect mortgage rates and, by extension, the housing market as a whole, Kramer said. “The slower the Fed tightens, the more likely Home Depot will have another good year.”
“Microsoft has become the largest stock in the world and I’m sure it will stay the same because it has a habit of underreporting,” he said.
“In short, while it’s a very good brokerage and consulting firm, it’s not respected because people cannot understand why it isn’t doing something more growth-oriented with its capital,” Kramer said. “Management will tell you that it has big gains, but not a single gainer stock trades in less than 10 times.”
Kramer said that of all the stocks on this list, He believes UnitedHealth Group is likely to repeat its strong performance in 2021 this year.
“Every time I see a stock go up, I get a little upset that we don’t own it for a charitable foundation, but we are just waiting for a fall. Unfortunately UNH rarely gives it to you, so maybe it’s a year. we just swallow our discipline and start buying, ”Kramer said.
Cisco shares are up 41% in 2021, but Kramer said he still believes the computer networking company is a buy. He mentioned Cisco’s strong leadership and growing position in the world of data centers and service providers.
“Order growth is the best I’ve seen in history, and orders are the best measure of profit in the business,” he said.
Michael Wirth, CEO of Chevron.
Adam Jeffrey | CNBC
“I love the huge demand for travel … and someday I’ll get better. [the Covid omicron variant] burns itself out because people want to go somewhere. If you think this decade will be a return visit to the “Roaring 20s” then American Express is perfect for this topic, ”Kramer said.
Kramer highlighted his often-repeated view that investors should own Apple stock is for the long term, rather than trading in the iPhone maker, which rose nearly 34% last year.
Walgreens Boots Alliance
Walgreens could have another good year after growing 30% in 2021, Cramer said. CEO Rosalind Brewer, who replaced her last year, has revamped the company’s leadership and the Covid pandemic has created a tailwind for the pharmacy chain, he said.
Kramer said he believed McDonald’s could repeat its 24% gain this year in 2021. “Although I like Chipotle better … McDonald’s is a more defensible and defensive name because it can beat any competitor around the world,” Kramer said.
He advises investors to “hold their nose and buy even if they are already up and running” because stocks rarely have significant pullbacks.
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