This week Jim Cramer is taking a look at the individual components of the Dow Jones Industrial Average -- their 2004 performance, and how they're shaping up for the year to come. Today, Part 3. (Be sure to read Part 1 and Part 2 of this series.)
| General Motors |
 |
General Motors(GM Quote - Cramer on GM - Stock Picks): This was one of my bigger gaffes. I should have seen the labor costs and the hobbling of the earnings power that comes from the rising short interest rates. Instead, I
predicted $8 in earnings for GM in 2004 and said the stock could trade to $64. Wrong! It looks like earnings of $6.30 are more accurate, and people won't even pay $40 for that. I think GM won't even make $5 in 2005 and that people will pay the same amount then that they pay now for those earnings. Another disappointing year for the big motor maker.
| Hewlett-Packard |
 |
Hewlett-Packard(HPQ Quote - Cramer on HPQ - Stock Picks): This one truly stunk up the joint in 2004. I expect it to earn no more than $1.52 a share in 2005, even though I said last year at this time that it could earn $1.60 and trade to $32. Wrong on the numbers, wrong on the target. I think Hewlett-Packard's doing better now and can approach my $1.60 a share in earnings in 2005, but I don't know if people will be willing to pay more than $25 for the stock. I wouldn't own it.
| Home Depot |
 |
Home Depot(HD Quote - Cramer on HD - Stock Picks): It will probably exceed my $2 earnings estimate by as much as 25 cents in 2004, but people didn't pay up for it. I thought the stock would go to $40, and it went to $42. I believe that the company could make $2.50 in 2005 and that people will keep loving management and take the stock to $50. Not a bad advance.
Jim Cramer
RSS
