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NEW YORK (TheStreet) -- Not every company participated in yesterday's big run, Jim Cramer told his "Mad Money" TV show viewers Thursday. Cramer identified five sectors that he thinks are still buy, buy, buys going into the new year.
Investors can still pick up any of the high-growth names, such as Netflix (NFLX - Get Report) or Amazon.com (AMZN - Get Report), because they don't even need earnings to propel their stocks higher. He also endorsed Facebook (FB - Get Report), with its secondary offering, and, of course, Twitter (TWTR - Get Report).
Cramer's first sector to watch is the banks. He said with the government "witch hunts" winding down, the banks once again have the confidence to expand. Bank of America (BAC - Get Report), a stock Cramer owns for his charitable trust, Action Alerts PLUS, is still a favorite as it has yet to return to its pre-crash levels.
Retail is Cramer's third sector highlight. He said the group has done nothing for a month as investors worried about the holiday season. Now's the time to circle back to Macy's (M - Get Report), another Action Alerts PLUS name, he said, along with GameStop (GME - Get Report) and PVH Corp (PVH - Get Report).
Cramer's last two picks are the oil companies and the airlines, two sectors that normally trade opposite one another but now could both go higher thanks to Warren Buffett's endorsement of Exxon Mobil (XOM - Get Report) and strong earnings from the airlines.
You can always fall back on big, long-term themes, Cramer told viewers, themes like the revolutions in biotech and oil and gas. These stocks still go down like all the others, but their mega-trends will give you the confidence to buy on that weakness.
In the biotech space, Cramer once again endorsed his "four horsemen," which include Celgene (CELG - Get Report), Gilead Sciences (GILD - Get Report), Biogen Idec (BIIB - Get Report) and Regeneron (REGN - Get Report).
Celgene continues to have three terrific divisions, yet trades at just 22 times earnings with a 23% growth rate. Meanwhile, Gilead's Hepatitis-C franchise remains strong with plenty more drugs in its pipeline. Biogen is a leader in treating multiple sclerosis and Regeneron shines in the macular degeneration arena.
In the oil patch, the trend towards continental energy independence by 2018 marches on, and Cramer gave the nod to EOG Resources (EOG - Get Report), Noble Energy (NBL - Get Report), Line Energy (LINE) and National Oilwell Vargo (NOV - Get Report). All but EOG are Action Alerts PLUS holdings.
EOG Resources is increasing production by 39%, while Noble is knocking it out of the park in the Niobrara shale. Line Energy yields almost 10% and National Oilwell Vargo is expecting accelerating earnings growth in 2014.
Cramer said investors can add any of these names to their portfolios and rest assured that their investments will flourish.
Stocking Stuffers Redux
For the next installment of his "Stocking Stuffers" series, Cramer recommended investors put two of this year's laggards under the tree this year: Apple (AAPL - Get Report) and Caterpillar (CAT - Get Report), both of which are Action Alerts PLUS holdings.
Shares of Apple are up a scant 3% for the year. But after bottoming this summer they have been on a roll. Apple is a holiday play, said Cramer, and estimates are now trending too conservative for the coveted gadget maker. Low expectations coupled with great products will be a winning formula for this stock, which trades at just nine times earnings with a 14% growth rate and a 2.2% dividend yield.
Caterpillar is one of the few Dow components to be down for the year. But here again, Cramer said the estimates are too low, and after several quarters of disappointments nobody seems to care. Business should start to recover in 2014 now that the company has slashed $5 billion in costs, including some 13,000 workers. Every dog has its day, the saying goes, and for Caterpillar 2014 could be its year. Cramer gave the stock a $100 price target.
Cramer was bearish on EMC (EMC).
The Road Ahead
It's been a full 18 months since Congress passed its last highway bill, and that can only mean one thing... the money is finally starting to flow to the companies that build roads. That's why Cramer said it's time to start picking up shares of Cemex (CX) and Vulcan Materials (VMC).
There are a lot of things going right for the aggregate and cement makers, including a huge boost in a federal loan program, states increasing funds for their own infrastructure projects and the recovering non-residential construction industry.
Cemex, based in Mexico, is the third-largest cement maker on Earth, with 21% of its earnings stemming from the U.S., 40% from Mexico and another 28% from northern Europe. The company just completed a major restructuring, strengthening its balance sheet and making it a great bet on a recovery in infrastructure spending.
Vulcan Materials is the best pure-play on U.S. construction and is the higher-risk, higher-reward stock of the two. The company never recovered to its 2007 highs of $121 a share, trading today at just $57 a share. Vulcan has a superior geography footprint, said Cramer, and investors shouldn't fear its 87 multiple as the earnings estimates will increase dramatically once stalled projects start moving again.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer schooled viewers on how the laws of supply and demand affect stock prices.
First, there's the notion of supply and demand for the stocks themselves. In the case of Twitter, there simply aren't enough shares to satisfy demand. Since Twitter is the only company of its kind, that makes it all the more valuable.
Contrast that to a stock like Citigroup (C). Not only does Citi have a ton of its own shares, it's one of a hundred banks investors could choose for investment.
There's also supply and demand for what a company makes. In the computer parts business, companies like Micron Technologies (MU) and Seagate (STX) fall on even a rumor that new factories might be built, increasing supply of things like memory and hard drives.
"Know your metrics," because simple economics affects stocks more than you might realize, Cramer concluded.
To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.
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-- Written by Scott Rutt in Washington, D.C.
To email Scott about this article, click here: Scott Rutt