Cramer’s 2022 forecast for the best-performing Dow shares final 12 months

CNBC’s Jim Cramer on Wednesday introduced his 2022 outlook for the best-performing shares within the Dow Jones Industrial Average final 12 months.

Previous to inspecting the blue-chip index, the “Mad Money” host provided his forecasts for prime performers in the S&P 500 and Nasdaq 100 earlier within the week.

“Of all of the shares I’ve lined to this point this week, [the Dow winners] is the group that I feel has the most effective probability of repeating its unbelievable efficiency even with the Fed being your foe, and it will likely be led by UnitedHealth, McDonald’s and Walgreens,” Cramer stated.

Cramer stated he believes Home Depot‘s 56% acquire final 12 months was fueled, partially, by investor optimism on the power of the U.S. housing market. “The most secure method to play housing is not with a homebuilder, it is with a retailer that caters to each new constructing and renovation,” Cramer stated.

The Federal Reserve’s benchmark rate of interest can impression mortgage charges and, by extension, the housing market general, Cramer stated. “The slower the Fed tightens going ahead, the extra probably Dwelling Depot can have one other good 12 months.”

Microsoft is “firing on all cylinders,” Cramer stated, highlighting robust efficiency in its cloud unit, PC enterprise and gaming that helped shares rise 51% in 2021. Whereas the inventory is not low cost, Cramer stated he expects the tech big to maintain executing in 2022.

“Microsoft has change into the largest momentum inventory on the earth and I wager it can keep that means as a result of it is obtained a behavior of crushing the estimates,” he stated.

Although Goldman Sachs shares jumped 45% in 2021, Cramer stated the inventory continues to be on a price-to-earnings foundation.

“In brief, whereas it is a excellent brokerage and advisory agency, it will get no respect as a result of folks cannot determine why it would not do one thing extra growth-oriented with its capital,” Cramer stated. “Administration would inform you that it is obtained loads of progress, however no progress inventory sells for lower than 10 occasions earnings.”

Out of all of the shares highlighted on this listing, Cramer stated UnitedHealth Group is the one he believes is almost certainly to repeat its robust 2021 efficiency this 12 months.

“Each time I see the inventory rally, I get a bit of upset that we do not personal it for the charitable belief, however we’re simply ready for a dip. Sadly, UNH hardly ever offers you one, so perhaps that is the 12 months we simply swallow our self-discipline and begin shopping for,” Cramer stated.

Cisco shares superior 41% in 2021, however Cramer stated he nonetheless believes the pc networking firm is a purchase. He cited robust administration and Cisco’s solidifying place on the earth of information facilities and repair suppliers.

“Its order progress is the most effective I’ve seen in ages, and orders are the most effective predictor of earnings within the enterprise,” he stated.

“I like the truth that there’s super journey demand … and goes to get higher as soon as [the Covid omicron variant] burns itself by as a result of folks wish to go someplace. When you suppose this decade would be the ‘Roaring 20s’ revisited, then American Express matches that theme completely,” Cramer stated.

Cramer confused his oft-repeated view that buyers ought to personal Apple shares for the long-term, as a substitute of buying and selling out and in of the iPhone maker’s inventory, which superior practically 34% final 12 months.

Walgreens is able to have one other good 12 months after advancing 30% in 2021, Cramer stated. CEO Rosalind Brewer, who took over final 12 months, has upgraded the corporate’s administration, he stated, and the Covid pandemic offered the pharmacy chain with some tailwinds.

Cramer stated he believes McDonald’s can replicate its 24% acquire in 2021 once more this 12 months. “Though I like Chipotle extra … McDonald’s is the extra defensible and defensive title as a result of it will probably triumph worldwide over any competitor,” Cramer stated.

His recommendation to buyers is to “maintain your nostril and do some shopping for, even because it’s already run” as a result of the inventory hardly ever has substantial pullbacks.

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