Cramer's 'Mad Money' Recap: Top Three Value Stocks for '07

It doesn't make sense that the market hasn't taken Halliburton higher even though it owns 80% of KBR (KBR Quote), which is up 50% on its own, Cramer said. Once Halliburton sells its shares of KBR, Cramer believes it will be "flush with cash" and will reinvest in itself.

Cramer called it a "stellar play" for 2007.

Good as Goldman

The second place value contestant, Cramer continued, is Goldman Sachs (GS Quote), which he also owns for his charitable trust.

Despite the fact that Goldman Sachs is a $200 stock, he explained it is cheap on a valuation basis. It has a 15% long-term growth rate, which is better than every brokerage house, but its multiple to earnings is lower than any of its competitors, Cramer said.

Goldman Sachs is the best broker, and the best play for mergers and acquisition activity, equity issuance and investing. At the same time, it is the cheapest, he said. Moreover, not only does the company have "great management," but last year it bought back more than $7.8 million of its stock and should buy back even more this year, Cramer said.

Goldman is a great value stock but is still the runner-up, he said.

All About Altria

If Cramer could only own one value stock for 2007, he said Altria (MO Quote), a stock he owns for his charitable trust, would be it. He named it his No. 1 value pick of the year.