NEW YORK (TheStreet) -- As the stock market wraps up a record-breaking year, TheStreet's Jim Cramer has selected 12 sectors where he thinks investors should put their money.
Among them is housing. In each of Cramer's 12 sectors, "you can almost throw darts and win with a couple of rare exceptions," he wrote in Here Are 12 Sectors to Bet On on the Real Money Web site.
"It's taken some time, but housing's finally become a favorite. How did this happen? I think it's the easier lending standards that are being adopted allowing lower FICO scores. It can also be lower gasoline as a spending boost," Cramer wrote. FICO scores evaluate a borrower's creditworthiness.
Five of the eight stocks Cramer mentions are a part of the S&P Homebuilders Select Industry Index. The Index is flat for the year compared to the S&P 500, which is up 12%.
We've listed Cramer's picks alongside the TheStreet Ratings, TheStreet's proprietary stock rating tool that projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 30 major data points, TheStreet Ratings uses a quantitative approach to rating stocks. The model is both objective, using elements such as volatility of past operating revenue, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.
Cramer's analysis and that of TheStreet Ratings may differ as Cramer may evaluate stocks without regard to time horizon, while TheStreet Ratings uses consensus estimates for the next 12 months only. In addition, changes in TheStreet Ratings may lag Jim Cramer's analysis, as consensus estimates may take some time to change meaningfully.
Read on to see Cramer's picks in the housing industry.
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