Get Even More Bullish on the Dow, Part 3

Editor's note: This is Part 3 of Jim Cramer's review of the prospects for the stocks that make up the Dow 30. Be sure to read Part 1, Part 2 and Part 4.

Hewlett-Packard Just getting going

Hewlett-Packard(HPQ): This name has been stalled ever since it became clear that Dell(DELL) was back. But that's silly. The biggest catalyst in H-P's PC-related history is about to occur: the shipping of Vista. That will take this stock to $50 on the explosion in earnings, thanks to the best-kept secret of this great company: It makes the cheapest and the best PCs. Management is just beginning to get this ship going; it isn't about to run aground in 2007.

Home Depot Helped by housing's turn

Home Depot(HD): I don't like Home Depot. I don't like its management. I don't like how it has made the stores into depressing places that drive me to Costco(COST) and Lowe's(LOW), even though they are much farther from my house than the Big Orange. Yet even Bob Nardelli can't stop the turn in the housing cycle, and this primo beneficiary could rally a quick $10 on the turn up. That's right, 10 points, making it one of the better performers in the Dow in 2007. I still like Lowe's better, though, and Sears(SHLD) much better.

Honeywell Will show its worth

Honeywell(HON): Will someone tell me why Honeywell is still in the low $40s, even though its businesses are getting better and better and it just gave you the big boost in the dividend? That makes no sense to me, no sense at all. Plus, CEO Dave Cote has finally been able to get his arms around all of the trouble he inherited at what had become a very dysfunctional company. I see this stock going to $52 by this time next year as deals, divestitures and cash flow make the worth here obvious, at last, to the market.