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), Noble Energy (NBL), Line Energy (LINE) and National Oilwell Vargo (NOV). 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) and Caterpillar (CAT), 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).