Some stocks are on a mission and you either get long or you get out of their way. You can spot these stocks. They blast out an orbit they have been on and once they are in motion, they stay in motion until where they get where they have to go.
What stocks are on a mission right now?
Let's start with Boeing (BA) . The stock of this company has been going up pretty much in a straight line ever since I interviewed the CEO back in December when he confirmed that business is strong and getting stronger. It's incredible how much this stock wants to go higher powered by a gigantic buyback, a boost in the dividend and excess cash galore. I think this stock wants to go to $400 where it might run out of steam on account of it being the most expensive stock in the Dow at that point.
It's incredible to watch this stock climb, with a second wind that we got earlier this week from management getting even more orders than we thought and telling a story of military contracts that simply hadn't been as much a part of the narrative as it should have been.
How can you spot a stock on a mission? Did you see how this thing traded today. Even though three separate research firms pushed it hard today it traded down two bucks because of some funky opening that had more to do with a weaker Europe than us. Almost instantly it flew up and embarked on another romp to $400.
The stock of Mastercard (MA) is on a mission, too, a mission to $200. I have liked it forever as it is part of a fabulous secular growth theme: the conversion of paper to plastic. Sure enough it reported still one more blow out -- which is incredible given how high the bar's been raised after all of the others. This time, though, the company had a whole new angle about why people should buy its stock: cryptocurrencies. Yep, people are using their credit cards to buy digital currencies like Bitcoin and the company is working on a pilot program to develop a pre-paid card for companies that make markets in Bitcoins. That's like throwing gasoline on the fire that's been raging under the stock of this incredibly well run company. The stock, at $173, up 15% for the year, I think has $200 written all over it.
Ever since the year began, the stock of Idexx Labs (IDXX) has been making a beeline to $200. We know this company as being a play on the humanization of pets. Others know it as a juggernaut that's up almost 40 straight points that reported a remarkable quarter today. I don't think it is finished.
Finally, there is Nvidia (NVDA) . Today the stock of the company behind the best video game players, artificial intelligence, machine learning and voice has been on rampage to $300. Today it got sidetracked by Goldman Sachs going from strong buy to buy. I have to admit as the leading supporter of this $240 stock I have been blanching, too, and recently told members of the Action Alerts PLUS club that it's time to trim; it's just up too much.
Incredible thing about stocks that are on a mission? Once they get started they don't fizzle out that quickly. They are objects that once in motion, stay in motion. These stocks are on jet propelled paths and if you want to be on them remember, they do give you short re-fuelings like Boeing and Nvidia today.
Otherwise, look out above, and get out of the way, these stocks are going to where they have to go.
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Action Alerts PLUS, which Cramer co-manages as a charitable trust, is long NVDA.