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This week Jim Cramer is taking a look at the individual components of the Dow Jones Industrial Average -- their 2004 performance, and how they're shaping up for the year to come. Today, Part 2. (Be sure to read Part 1 of this series.)
: Got hit by scandal after scandal, so even though it vastly exceeded my estimate of $3.60 for 2004 -- it should earn $4.00 -- no one felt like paying for it, and it's falling six bucks short of my target. This year will be the year that CEO Chuck Prince gets his arms around all the problems and begins to bring out value, which would put the company at $4.50 earnings in 2005, and it should trade up to $57. Nice move!
: Been earnings-challenged for years, only this year it finally surfaced as a multiple issue. I thought Coke would earn $2.00 but it couldn't, and the year looks more like $1.95. A weak dollar assures that Coke won't do worse in 2005 than it did in 2004, but frankly, I don't know how it will do better. I think the stock will trade no higher than $45 in 2005. Maybe Coke will come out of the
will come in? That would be huge and positive.
: I was correct to be bullish when writing about Disney's stock last year, but I had no idea that the company had $1.20 a share in earnings power -- I had thought thatit was more like a buck in earnings power. People are underestimating the power of hits on ABC. I think Disney could earn $1.50 a share and trade to $35 a share based on that earnings potential. I believe Disney is going to be a big stock in the coming year.
: This stock missed my 2004 estimate by about 20 cents a share but still traded to my target of $50. In 2005, I think that, because of a weak dollar, it could earn $3.00 a share and trade to $58 in the coming year. DuPont is a nice stock to be stuck in, frankly, with its good dividend.
: Blew the numbers away in 2004 because of oil's rise. I think it will do the same in 2005, maybe even better. I thought it would earn about $2.50 and trade to $42 in 2004. Instead, it will earn about $3.70 and has traded to $51. To me, this company could do $4.25 and trade to $65 in 2005. I love this stock. I am hoping that
makes a reappearance in the Dow, perhaps at the expense of
, to better reflect oil's importance in our economy.
: This has been a good call of mine for about a dozen years now, and 2004 is no different. I thought GE could earn $1.65 and trade to $36. What I didn't count on was a shuffling of the company's portfolio that gave it a higher multiple on lower earnings, as the company probably won't make more than $1.68. It will go to $45 on that in 2005, though, because people like the new mix of the company's businesses.
Click here to read Part 3 of this series.
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James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made.
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