CNBC’s Jim Kramer revealed his 2022 outlook for last year’s worst Dow Jones Industrial stock on Wednesday.
The Mad Money host also gave his forecast for the best performance of the blue-chip index.
“There are several stories of dogs returning from the Dow, but for the most part I don’t expect these dogs to have their day in 2022,” Kramer said.
Walt Disney shares fell 15% last year, which Kramer said was not a pleasant experience because his shares are held by his charitable investment fund. However, Kramer said he believes the media and entertainment giant will start getting more loans for “the perfect balance of assets at home, at the theater and on vacation” once the Covid pandemic dies down.
“These telephone and cable companies are essentially competitive utilities,” Kramer said, describing it as “a terrible place to live.”
A pilot waves his hand as a Boeing 777X aircraft taxis during its maiden test flight from the company’s Everett, Washington, USA plant on January 25, 2020.
Terrey Sylvester | Reuters
Kramer said it was a tough few years for Boeing, but he noted that his shares still belong to his charitable foundation. Allegiant Air’s decision to buy 50 new Boeing 737 Max aircraft This could be “a harbinger of a twist of fate” for Boeing, Cramer said.
Kramer criticized Amgen’s recent operations and future prospects, calling the pharmaceutical manufacturer’s stock a “shock.” He added: “I thought Amgen should be a growing company, but from a biotechnology perspective, it’s a fossil.”
Honeywell, which dropped 2% in 2021, one of the best stocks chosen by Kramer for 2022. On Wednesday, he said he believed in the management team of the industrial conglomerate, but attributed most of the stock problems to the company’s aerospace division.
Kramer called recent performance in Merck shares “extremely disappointing.” While the stock was up 2.43% on Wednesday, Kramer said he was not sure “what could support the rally,” and suggested that investors sell the stock.
A pedestrian wearing a protective mask walks past the headquarters of Visa Inc. in Foster City, California.
David Paul Morris | Bloomberg | Getty Images
While Visa shares have lagged behind the broader Dow over the past year, Kramer said historically it is “often a prelude … to a very big move.”
Small companies trying to gain a stake in the payment processing space have been headwinds to Visa shares, along with competitors. “Mastercard,” Kramer said. Kramer said that of the two, he prefers Mastercard because of its growth.
“If they cannot attract more users to their [membership program, Walmart+]”Kramer said he could use future forces to sell stocks” because there are many more stable retailers out there. “
Mikhail Roman, General Director, 3M
Scott Mlyn | CNBC
Industrial giant 3M had “a tough year, but it still ended up in positive territory, despite several downturns based on several different divisions, which is not typical for this great company,” said Kramer. “It looks like stocks here don’t want to go much lower, but I can’t think of anything to reverse that,” he added.
“I like this. I also believe in management, ”said Kramer. “However, I don’t like where we are in the chemical cycle – almost all of them have peaked … Bad stocks when the Fed starts to tighten. There is the best fish for frying. “