American Express
Tore the cover off the ball |
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American Express(AXP Quote - Cramer on AXP - Stock Picks): Tore the cover off the ball in 2004. I thought it would earn $2.40. Turns out that $2.70 is more like it. Now that banks will be issuing American Express cards, I think that this company's earnings could explode and that $3.10 might be doable. It is realistic to think that people will pay $65 for those, which makes American Express a decent bet for 2005.
AIG
Spitzer's impact will be felt |
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American International Group(AIG Quote - Cramer on AIG - Stock Picks): Got added to the Dow in 2004 so I didn't hazard a forecast. The company looks to make $4.40 this year. Frankly, I am not a fan and think that the fallout from New York Attorney General Eliot Spitzer is going to hurt the whole industry's profitability. I see subpar earnings growth, maybe no more than $4.50, and the stock will just mark time in the $60s.
Boeing
Enjoying a multiyear move |
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Boeing(BA Quote - Cramer on BA - Stock Picks): Enjoying a multiyear move of which 2004 was just year two. These moves tend to last more than four or five years and the market loves the predictability of the earnings cycle. I think Boeing, which I said would earn $3.25 in 2004 -- $2.50 is more like it -- will get to the $3 level. Those earnings will take the stock to $75. I know, I know, really bullish, so why don't I own it
for Action Alerts PLUS? The answer is, I have been waiting for a pullback for about nine months now. Maybe I should stop waiting.
Caterpillar
A 'wish I owned it' stock |
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Caterpillar(CAT Quote - Cramer on CAT - Stock Picks): I've always had a great feel for Caterpillar, in part because I always thought of myself as a bit of a machinery analyst, with machinery including technology. I thought Caterpillar would hit $100 after it earned $5, and I am right on target. Next year, with a weak dollar and still low interest rates, I think $6 could be doable, which would put this stock at $120. It will split, of course, making it even sexier. Another "wish I owned it" stock.
Click here to read Part 2 of this series.
Jim Cramer
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