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There are very few profit-takers in this market, Jim Cramer told his Mad Money viewers Wednesday, and with so little overhead resistance, stocks still have a lot more room to run.
How can the dramatic rise of the Dow Jones Industrial Average since the election be justified? Cramer said that if you look at each stock individually, you'll see that there are many reasons not to sell.
Take American Express (AXP - Get Report) , a stock that had been left for dead, but which is now up 12% since the election. Cramer said this company still has a lot of ground to make up. Then there's Travelers (TRV - Get Report) , which is a big beneficiary from rising interest rates. UnitedHealth Group (UNH - Get Report) is one of only a few health-care names that doesn't suffer from abolishing Obamacare -- making that stock a winner as well.
Cramer said he can make a bullish case for other Dow names, like Walt Disney (DIS - Get Report) , Verizon (VZ - Get Report) and Chevron (CVX - Get Report) as well. Shares of Verizon in particular never should've been so low to begin with.
Look at all of these stocks individually and it's easy to see why the market is still rising, Cramer concluded.
Taking Another Look at Pipeline Stocks
Cramer has been telling investors to steer clear of the pipeline stocks for more than a year now, while falling energy prices put a lid on the group's pricing power and slashed their bountiful dividends. But a big shift has occurred for the pipeline companies, and that shift is Donald Trump.
Trump is about as pro-fossil fuel as you can get, Cramer said, and that's cause enough to circle back to the group and buy some Magellan Midstream Partners (MMP - Get Report) , a recently added Action Alerts PLUS holding.
Unlike many pipeline MLPs, Magellan is largely fee-based, deriving 85% of its revenue from services that don't rely on the price of crude or its derivatives. The company also has among the lowest cost of capital and a safe 4.5% yield with a long history of raising distributions.
Even with the stock up 12% since the election, Cramer said, Magellan has a lot of room to move. The company just approved a $750 million secondary offering and Cramer said that will make a terrific entry point into this superior pipeline operator, even with shares just off their 52-week highs.
Costco: Counting the Benefits
It's no secret that Cramer's a big fan of Costco (COST) . Not only does he shop there on the weekend, he also owns the stock for Action Alerts PLUS. But after a lousy 2016 in which shares have risen just a scant 1% -- they're now up more than 20 points since the election.
Cramer said that's because Costco's bumpy transition from American Express to Visa (V - Get Report) is finally behind it and the company announced that over one million new Visa cards have been issued. Costco is also benefiting from the end of deflationary food and gasoline prices.
But more important, this quarter also marks the one-year anniversary of Costco's decision to stop selling cigarettes. Beginning next quarter, the same store comparisons get a lot easier.
Costco has plenty of other positives for 2017 as well, including a likely membership price increase, a special dividend payout and a customer base that remains loyal no matter what the economic environment.
With shares trading for 27 times earnings, Costco is far from cheap, Cramer admitted, but with a major turn in same-store sales coming, the estimates are likely far too low for this stellar retailer.
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Executive Decision: Paychex
For his "Executive Decision" segment, Cramer checked in with Marty Mucci, president and CEO of payroll processor Paychex (PAYX - Get Report) , which just delivered a penny-a-share earnings beat and maintained the company's 2017 guidance.
Mucci said he expects a lot of regulatory changes to come during the first two years of the Trump administration, and that means companies will still need help from Paychex to navigate the changes. He was also bullish on rising interest rates, as every quarter-point rate hike translates to almost $4 million a year in profits for Paychex, which holds around $3.7 billion in payroll on its books at any given time.
Turning to the topic of jobs, Mucci noted that business optimism is at multi-year highs and Paychex is seeing the most growth in the Southeast.
Finally, when asked about the possible repeal of the Affordable Care Act, Mucci said that a repeal may hurt Paychex, which helps companies managing health-care plans, but he expects there will be something replacing it that customers will continue to need help managing.
In the Lightning Round, Cramer was bullish on Nucor (NUE - Get Report) , Marathon Petroleum (MPC - Get Report) , Westar Energy (WR) , Freeport-McMoRan (FCX - Get Report) , EOG Resources (EOG - Get Report) and Mattel (MAT - Get Report) .
In his "No Huddle Offense" segment, Cramer told investors to keep an eye on the fundamentals, which is not that hard to do given the plethora of data coming in.
For example, existing home sales came in stronger than expected, making Home Depot (HD - Get Report) and Masco (MAS - Get Report) the stocks to own. Both Darden Restaurants (DRI - Get Report) and Carnival Cruises (CCL - Get Report) also reported strong numbers, making both of those stocks buys as well.
After digging into the numbers, Cramer said it was Accenture's (ACN - Get Report) cautious commentary, not its earnings, that sent shares lower today, and he's as bullish as ever on FedEx (FDX - Get Report) -- because e-commerce continues to drive business growth.
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