NEW YORK ( TheStreet) -- With an 11% jump in new-home sales in June, Jim Cramer's eyes are on Centex (CTX), he said on Monday's "Stop Trading!" segment on CNBC.
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deal to buy Centex will close in August, which will be "monumental." He said the "whole group's been on a tear," but with the catalyst of the closing of the Pulte deal, Centex is where he'd put his money.
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"a battleground" and advised viewers that, after its "big leap back to $30," it would likely pull back "before it has its next one."
Cramer said that recent acquisitions -- including
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Johnson & Johnson's
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-- "are very good." "I think that people should start recognizing that when your stock goes up after a deal, when people see this, it bring more and more mergers," he said.
Cramer said that had
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reported today, "I think it would've barely gone up." He said the stock is now "very overbought" and recommended waiting for a pullback to buy. "Eaton has been one of my favorites for a long time," he said, but "not up here. I don't want to buy it in the $50s."
--Rebecca Corvino writes from New York.