Get Even More Bullish on the Dow, Part 4

P&G Trapped by the macro

Procter & Gamble(PG): Ooh, this one's tough here. You need the economy to slow dramatically to get it moving, and if that happens, the Federal Reserve will cut interest rates, so no one will want P&G anyway. This is the curse of a great American company; it just can't get anyone to like it enough to take it higher unless the economy's slow and the Fed is tightening, the secret of its success since its bottom in the low $50s. I peg it at $67 for 2007, plus or minus. The company deserves better, but it is trapped by macro considerations.

United Tech Will stall at $62

United Technologies(UTX): It has already shaded down for the next year, and I believe its outperformance vs. General Electric(GE) has at last come to an end. Plus, while its business overseas remains strong, it's the 50% of the business that's domestic that I don't care for. I believe that as we get closer to the presidential election, things will only grow worse for this company. I peg it stalled at $62.

Verizon Strong, but not showy

Verizon(VZ): When the Fed starts cutting rates, that 4%-and-change yield on Verizon is going to look pretty darned good. The company's making its move in video with unclear results, but its wireless business is just plain on fire. And after being a tough and competitive business for so long, Verizon is a darned good one, thanks to the mergers, with barriers to entry for its competitors that will never be surmounted in our lifetimes.

That means Verizon has a chance to grow earnings, grow dividends and grow its businesses. Still, I'm going with AT&T for appreciation, and I believe Verizon will creep higher 3 points, max.

Wal-Mart Just awful

Wal-Mart(WMT): Wal-Mart's Wal-Mart. It's staying at $50 or below as long as Lee Scott and his culture of de-aspiration continue to rule. This company will still be picked apart by all of those who know its number is up, whether it be Target(TGT) or Costco(COST) or J.C. Penney(JCP). An awful company and an awful stock. I think it will go to $50 at year-end on rumors that Scott's out.

Walt Disney A hit machine

Walt Disney(DIS): Doesn't have the properties that afford much growth, but it can keep turning out hits and expanding the premier international entertainment franchise. At some point, this company's going to have to ask itself why it is public. In the interim inertia, the pipeline for television, a weak dollar that will bring more tourists to its expanding theme parks and animation, the cheapest form of movie-making, leave me thinking $40s is a legitimate goal.

Editor's note: This is the conclusion 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 3.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting

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