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The "best place to be," Jim Cramer told viewers of his "Mad Money" TV show Tuesday, is the

Dow Jones Industrial Average

because it's "full of opportunity."

Cramer believes the index will reach 14,548 this year, and he sees it climbing by close to 500 points in the next three months and then another 500 in the November-December rally he predicts will come. The Dow closed Tuesday at 13,540.

Cramer didn't pull the estimate "out of thin air," he said, but rather arrived at it after doing a bottom-up analysis of all the 30 stocks in the Dow by determining what price each stock is likely to reach by the end of the year.

In this second part of his weeklong series dedicated to evaluating the 30 stocks in the Dow, Cramer started Tuesday with


(CAT) - Get Caterpillar Inc. Report

, a name that's driving him crazy "because people still don't get it."

"It is the single most misunderstood large-cap stock in the universe," Cramer said. People need to understand that Caterpillar, which he owns for his

Action Alerts PLUS charitable trust, is where the growth is. "It's in the machinery sweet spot," he said.

First of all, everything in housing is going to be up against "easy comparisons" during the second half of the year, Cramer said. But despite that, Caterpillar has more to do with infrastructure in the Middle East tar sands and the digging out of coal and petrochemical refineries in Dubai than it has to do with homebuilders such as


(LEN) - Get Lennar Corporation Class A Report


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TheStreet Recommends

Toll Brothers

(TOL) - Get Toll Brothers, Inc. Report

, he said. Caterpillar, he predicts, should reach $90 by year-end. The stock closed Tuesday at $75.51.

Moving on, Cramer said he believes that


(C) - Get Citigroup Inc. Report

has potential upside despite the company's leadership and that


(KO) - Get Coca-Cola Company Report

, which closed today's session at $51.48, should go to $60 in six months.

Neville Isdell, Coke's chairman and CEO, has taken the beverage company's stock and made it so that it has growth in the mid-double digits, he said. Coke is diversifying beyond carbonated beverages, and its new product, Coke Zero, is a hit.

Further, even though

Exxon Mobil

(XOM) - Get Exxon Mobil Corporation Report

is high, "don't let this scare you away," Cramer advised. It has already outrun his price target of $80, and he believes it should still go much higher. Exxon closed at 82.77 Tuesday.

As for


(DD) - Get DuPont de Nemours, Inc. Report

, Cramer said he considers this stock "a break on the Dow progress." He said DuPont might have a couple of points of upside coming, but it has paused here. The stock closed Tuesday at $52.04.

For his last Dow stock of the day,

General Electric

(GE) - Get General Electric Company Report

, Cramer said he's taking "a pass" on this one for now.

McMoRan: A Natural Gas Buy

Every one thought natural gas was going to be "brutal," but the commodity turned around and has become a buy, Cramer told viewers.

There are a lot of ways to play the natural gas sector, he continued. Some of the names he said he likes are


(HAL) - Get Halliburton Company Report

, which he owns for his charitable trust, and


(NBR) - Get Nabors Industries Ltd. Report

But for a riskier natural gas stock, Cramer said he likes

McMoRan Exploration


and believes it's a buy.

This is a stock that's going to move not in "drips" but in "gushes," he said. "Now that natural gas is close to $8, MMR is back on."

Cramer said he believes people could see a double in McMoRan, but he advised market players to use limit orders and not to buy too much of the stock at one time. He feels the potential upside is "enormous" for McMoRan if the company finds a big natural gas deposit, which is what it aims to do.

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It's true McMoRan reported low guidance, but all the bad news has already been priced into the stock, Cramer added, and if it has good news, it should go up "much, much higher." Some of McMoRan's positives include the facts that it had optimistic drilling results this year and that the company does not compensate its management with cash. This means the management has serious interest in driving the stock's valuation, Cramer said.

If investors want a speculative way to play high natural gas prices, Cramer recommends buying McMoRan, he said.

The Case for MasterCard

Yesterday was a great day for monopolists and anticompetitive practices because the Supreme Court issued a ruling that makes it much more difficult to pursue with civil antitrust suits.

In a case such as this, there is always a winner, and here it is


(MA) - Get Mastercard Incorporated Class A Report

, he said. MasterCard has been "nothing but a winner" since Cramer first recommended it, offering shareholders a triple, he said.

However, there has always been a "dark cloud hanging over the stock" even though it has consistently delivered good numbers. That dark cloud, Cramer said, was antitrust litigation.

American Express

(AXP) - Get American Express Company Report

and Discover sued Visa and MasterCard for antitrust violations, but now this suit should get dismissed, he said.

The one reason not to own this stock is now gone, Cramer said. Negative attention because of the suit has made people sell the stock, but now he believes "the short-covering tsunami" should send this stock higher.

Moreover, not one of the reasons to buy the stock has changed, Cramer said. The stock continues to have "big international growth," and it is gaining market share. Bears are worried about Visa going public, "but certainly you shouldn't let Visa scare you out of this great stock," he said.

Cramer said he can't see any reason why not to invest in MasterCard.

Mad Mail & Sudden Death

In the show's "Mad Mail" segment, Cramer told a viewer that he considers

Energy Metals


a sell because it has gone up a good deal and has given people a "great gain." He believes it would be piggish to not cash in on the stock at this point.

Separately, Cramer told another mailer, he believes Halliburton is headed to $40 and that

Level 3 Communications


"exploded to the upside today."

During the show's "Sudden Death" round, Cramer was bearish on

Hovnanian Enterprises

(HOV) - Get Hovnanian Enterprises, Inc. Class A Report


Sirius Satellite Radio

(SIRI) - Get Sirius XM Holdings, Inc. Report


Lightning Round

Cramer was bullish on

Jacobs Engineering Group

(JEC) - Get Jacobs Engineering Group Inc. (J) Report


Superior Offshore International



Oceaneering International

(OII) - Get Oceaneering International, Inc. Report


Chicago Bridge & Iron




(LOW) - Get Lowe's Companies, Inc. Report


Home Depot

(HD) - Get Home Depot, Inc. Report





Switch & Data Facilities



Ball Corporation

(BLL) - Get Ball Corporation Report






(VZ) - Get Verizon Communications Inc. Report



(CERN) - Get Cerner Corporation Report


Rite Aid

(RAD) - Get Rite Aid Corporation Report


CVS Caremark

(CVS) - Get CVS Health Corporation Report





Cramer was bearish on

Aegean Marine Petroleum



Color Kinetics




(DAKT) - Get Daktronics, Inc. Report





For more of Cramer's insights during the most recent Lightning Round, click here


Want more Cramer? Check out Jim's rules and commandments for investing from his popular book by

clicking here


At the time of publication, Cramer was long Caterpillar, Halliburton and Sears.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.