21. Nike (NKE) had a fabulous quarter, but the Chinese futures orders weren't strong enough, and neither was the company's spending for the future. I think the company's China segment will turn on the strength of its economy, and that the U.S. and Western Europe will stay strong. I was surprised that China didn't roar, but I also know that Nike is a counterintuitive stock: You have to buy when a number is awry, because Nike's management has a very positive habit of fixing what goes wrong, and fixing it quickly.
It wouldn't be a stretch to see this stock sell at a super premium multiple on a number north of the $3-per-share consensus, and for the stock to rise to $85. That would make it the most expensive stock in the Dow, but it isn't as if the company missed on the top or bottom line -- and I think it will only do better as the year progresses.22. Pfizer (PFE)? I don't know. This company has done pretty much everything it can to avoid really getting crushed by the patent cliff. But, unlike Merck (MRK), another drug company with no growth, I don't know what Pfizer can do for an encore after its 31% gain this year. Here's one that I think will tread water next year, and I believe it would be hard pressed to go above $34 unless the company reveals a blockbuster drug that no one knows it has, which I regard as unlikely. I just think it will be one of the bigger blahs of the Dow. Then again, it has a decent dividend and a pro-shareholder management, so maybe it has something up its sleeve that I can't see. 23. Procter & Gamble (PG). I don't think the U.S. is going to have a stop-start economy this year. To me, that 4% growth in gross domestic product is more of a beginning than a coda. So lots of people will continue to bail out of P&G, as they did at the end of the fourth quarter of 2013. I think they will be wrong. A.G. Lafley has come back to make changes, not to be a caretaker, and I think this is the year he'll do so. Frankly, P&G is too big and too layered, and even though Bob McDonald was starting to make headway with the overhead before he was sacked, there is much heavy lifting to do -- too much if the company isn't split up.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV