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 |
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Hewlett-Packard(HPQ Quote - Cramer on HPQ - Stock Picks): This name has been stalled ever since it became clear that
Dell(DELL Quote - Cramer on DELL - Stock Picks) 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 |
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Home Depot(HD Quote - Cramer on HD - Stock Picks): 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 Quote - Cramer on COST - Stock Picks) and
Lowe's(LOW Quote - Cramer on LOW - Stock Picks), 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 Quote - Cramer on SHLD - Stock Picks) much better.
Honeywell
Will show its worth |
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Honeywell(HON Quote - Cramer on HON - Stock Picks): 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.
Jim Cramer
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