Cramer's Top 10 Momentum Stocks for the Fourth Quarter

Check out Jim Cramer's latest trading recommendations on "Action Alerts Plus".


NEW YORK ( TheStreet) -- The days are getting cooler, the leaves are changing colors and on Wall Street, money managers are scrambling to make sure they beat the major averages before the year is done.

That's why Cramer offered his "Mad Money" TV show viewers last week his top 10 momentum stocks that have been "anointed" by these return-hungry managers and will outperform the markets through the end of the year.

AMZN Chart AMZN data by YCharts

Amazon.com ( AMZN): Cramer said Amazon has become the Wal-Mart ( WMT) of the Web, a beloved retailer with prices and selection that are second to none. But Amazon hasn't stopped there. Under the leadership of CEO Jeff Bezos, the company has expanded into making hardware like it's successful Kindle tablets, as well as into online media distribution, making it a true online marketplace for the world.

GOOG Chart GOOG data by YCharts

Google ( GOOG): Cramer noted Google is in a similar position. It dominates online search, commanding a 66% market share in the U.S. The company is also a major in mobile with its Android operating system and it has a mobile and social strategy, as well as YouTube, among its other opportunities.

Given that online advertising still represents only 10% of all advertising, Google clearly has lots of growth ahead of it. Google trades at only 11 times its expected 2015 earnings of $67 a share.

V Chart V data by YCharts

Visa ( V) and MasterCard ( MA): Cramer reminded viewers that Visa and MasterCard are not banks and don't loan any money. They simply process transactions and make a bundle doing it.

That's why shares of Visa are up 35% so far this year while MasterCard is not far behind at 25% for the year. Given that the switch from paper money to debit and credit cards can trump even a weakened global economy, Cramer said both of these stocks should be on investors' buy lists.

ULTA Chart ULTA data by YCharts

Ulta Salon ( ULTA): With 489 stores delivering same-store sales up 9.3%, Cramer said Ulta has high hopes for the 100 new stores it plans to open next year. The company already commands 2.8% of total beauty product sales in the U.S. and is growing a 25% a year.

TSCO Chart TSCO data by YCharts

Tractor Supply ( TSCO): Tractor Supply is a larger retailer, with 1,100 stores and plans to open 90 more next year. The company expects it can ultimately have 2,100 locations, or 85% more than today.

The company has decent same store-sales growth and little overlap with the likes of Home Depot ( HD) or Lowe's ( LOW).

SHW Chart SHW data by YCharts

Sherwin-Williams ( SHW): Cramer said when you're selling a home you buy paint, and when you're buying a home you buy more paint. That's why as the housing market recovers, Sherwin keeps selling more and more paint. The company last reported a 9% uptick in sales and a 13.9% increase at its stores.

The company continues taking market share and cutting costs, which is why Cramer said it deserves more than 19.2 times given its 16% growth rate. Of the analysts currently covering Sherwin-Williams, only three rate it a buy, with 12 holds and another three sells.

DEO Chart DEO data by YCharts

Diageo ( DEO): Diageo is a company with a fantastic stable of brands, including seven of the top 20 liquors out there. Diageo also sports a 3% dividend and has less exposure to Europe, but more exposure to the red-hot emerging markets. Cramer said at 15.5 times earnings and a 10% growth rate, Diageo still trades for well less than its rivals Brown-Forman ( BFB) and Beam ( BEAM).

ALXN Chart ALXN data by YCharts

Alexion Pharmaceuticals ( ALXN): Cramer explained that Alexion has so-called orphan drugs to treat rare blood disorders. The "orphan" status means the government helps in any way possible to bring these drugs to market.

Alexion's primary drug, Soliris, is one of the most expensive drugs available, costing $500,000 a year. The company is now seeking to expand Soliris to treat rare kidney diseases, which could add another $900 million to Soliris already $2 billion in revenues. Tack on other possible uses for Soliris and, Cramer said, Alexion could have $5.4 billion in revenue over the next few years. That's part of the reason why shares of Alexion are up 321% since Cramer first recommended it in Oct 2010.

GILD Chart GILD data by YCharts

Gilead Sciences ( GILD): Gilead Sciences, primarily known for its quad pill HIV treatment that can be taken just once a day. Gilead also has a strong hepatitis-c franchise which could be worth $8 billion over the next six years.

Cramer explained that unlike the current treatment, which is a 24-week injection regiment with varied results, Gilead's treatment is only a 12 week oral treatment that has seen 100% cure rates in come patients.

--Written by Scott Rutt in Washington, D.C.

To email Scott about this article, click here: Scott Rutt

Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

At the time of publication, Cramer's Action Alerts PLUS had a position in HD.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com 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 TheStreet.com, 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 TheStreet.com 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, TheStreet.com 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 TheStreet.com, 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 TheStreet.com. 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 TheStreet.com, 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.

More from Opinion

Trump Blinks on China Trade War That's Looking Harder to Win

Trump Blinks on China Trade War That's Looking Harder to Win

Monday Madness: GE, China, and Micron

Monday Madness: GE, China, and Micron

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

Attention 60 Minutes: Google Isn't the Only Big-Tech Monopoly

How Technology Will Unleash the Legal Marijuana Industry's Growth Potential

How Technology Will Unleash the Legal Marijuana Industry's Growth Potential

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense

Apple Buys Tesla? Amazon Buys Sears? 3 Dream Mergers That Just Make Sense