Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.
After a tremendous week on Wall Street, can the rally continue? That was the question Jim Cramer pondered with his Mad Money viewers Friday as he laid out his game plan for the holiday-shortened week ahead.
On Monday, Cramer said he'll be watchingGameStop (GME) - Get GameStop Corp. Class A Report , along with Tyson Foods (TSN) - Get Tyson Foods, Inc. Class A Report , Mallinckrodt (MNK) - Get Mallinckrodt Plc Report and Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report . Cramer said he's still a believer in GameStop and hopes Palo Alto can stage a comeback for the cyber security names, but Tyson is still in the penalty box and Mallinckrodt will likely not have good things to say.
Tuesday is jam-packed with stocks Cramer likes including Campbell's Soup (CPB) - Get Campbell Soup Company Report , Hormel Foods (HRL) - Get Hormel Foods Corporation Report , Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report , Signet Jewelers (SIG) - Get Signet Jewelers Limited Report and Analog Devices (ADI) - Get Analog Devices, Inc. Report , along with some he doesn't -- Tiffany (TIF) - Get Tiffany & Co. Report and both parts of former Hewlett-Packard, HP (HPQ) - Get HP Inc. Report and Hewlett Packard Enterprise (HPE) - Get Hewlett Packard Enterprise Co. Report .
Beverage Shares Have Pop
The Federal Reserve may be poised to raise interest rates to rein in the economy, but there's one sector that's in bull market mode: the beverage stocks. Cramer said his favorites in the soda and energy space remains Dr Pepper Snapple (DPS) and Monster Beverage (MNST) - Get Monster Beverage Corporation Report .
While shares of Coca-Cola (KO) - Get Coca-Cola Company Report and Pepsico (PEP) - Get PepsiCo, Inc. Report have only seen modest growth in 2015, shares of Dr Pepper and Monster are up 23% and 36% respectively.
Dr Pepper derives 90% of its revenue from the U.S. and is therefore largely immune to the strong U.S. dollar. The company is also very shareholder friendly, buying back $668 million worth of its own shares, or 3% of its float, in just the past quarter. Even with shares near their 52-week highs, Cramer said Dr Pepper is a buy at just 21 times earnings.
Then there's Monster, the world's No. 2 energy drink maker in a happy duopoly with Red Bull. Thanks to its partnership with Coke, Monster has access to a huge global distribution network, even though it still derives 80% of sales domestically. Shares of Monster trade at 38 times earnings, but the company sports a 21% long-term growth rate.
Now for the Hard Stuff
Continuing with his beverage bull market thesis, Cramer took at look at the alcoholic side of the beverage biz, recommending Constellation Brands (STZ) - Get Constellation Brands, Inc. Class A Report and Molson Coors (TAP) - Get Molson Coors Beverage Company Class B Report .
Shares of Constellation are already up 39% for the year, and the world's No. 3 brewer and premium wine maker could get even larger if the merger between Anheuser-Busch InBev (BUD) - Get Anheuser-Busch InBev SA/NV Report and SAPMiller (SBMRY) requires the divestiture of some assets, which it most certainly will. But even without more brands, Cramer said Constellation is already having trouble keeping up with the demand for its products. Shares of Constellation trade at just 23 times 2016 earnings.
Then there's Molson Coors, which is already in a deal with SAPMiller to buy the remaining portions of the Coors brand it doesn't already own. After the deal closes, Molson will own 100% of Coors and Miller Lite, which will boost earnings by 25%, adding $4.7 billion in revenue.
The New 'Three Stooges'
Rule No. 1 when you find yourself in a hole: stop digging! That's a lesson that has fallen on deaf ears at BHP Billiton (BHP) - Get BHP Group Ltd. Report , Rio Tinto (RIO) - Get Rio Tinto Plc Report and Vale (VALE) - Get Vale SA Report , three companies which Cramer dubbed the "Three Stooges" of iron ore.
It seems like common sense really. When the price of the commodity you make falls, you cut production of that commodity. But the stooges have been doing the opposite, raising production, resulting in the cutting of their share prices by 58% for BHP, 33% for Rio and a whopping 75% for Vale over the past two years.
Cramer said the dividends are all three companies are in danger. BHP yields 4.3% but currently pays out $2 for every $1 in earnings. Unsustainable. Rio yields 6% and pays out $1 for every 40 cents of earnings. Then there's Vale, which has already cut its dividend twice but still yields 5% and is losing money every quarter.
Cramer said investors need to steer clear of this entire sector.
In the Lightning Round, Cramer was bullish on PPG Industries (PPG) - Get PPG Industries, Inc. Report , Masco (MAS) - Get Masco Corporation Report , Match (MTCH) - Get Match Group, Inc. Report , Sirius XM Radio (SIRI) - Get Sirius XM Holdings, Inc. Report , Applied Materials (AMAT) - Get Applied Materials, Inc. Report , LAM Research (LRCX) - Get Lam Research Corporation Report , Mondelez International (MDLZ) - Get Mondelez International, Inc. Class A Report , Parker Hannifin (PH) - Get Parker-Hannifin Corporation Report , Digimarc (DMRC) - Get Digimarc Corporation Report , RR Donnelley (RRD) - Get R.R. Donnelley & Sons Company Report and Johnson Controls (JCI) - Get Johnson Controls International plc Report .
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said that just a week ago, it looked like the bull was on its last leg, with only a handful of leaders still able to eke out any gains. Retail was crushed, the industrials singed and oil and biotech was seeing sizable declines.
Now, just a week later, that narrow leadership has expanded greatly. Retail is not dead after all, some of the industrials still can turn a profit, and the oil stocks have proven they can hang in there while the health care stocks seem to have been reborn.
It's remarkable to see such a transformation in so many sectors in such a short time, Cramer concluded. Investors should take notice.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.
At the time of publication, Cramer's Action Alerts PLUS had no position in stocks mentioned.