Cramer pinpoints 4 stocks 'on a mission' to higher prices: Boeing, Mastercard, Idexx and Nvidia
|Date | 02-02-2018 - 05:18 PM||Article Type | Stock Markets||Region | United States|
By Elizabeth Gurdus
- "Mad Money" host Jim Cramer predicts that shares of Boeing, Mastercard, Idexx Laboratories and Nvidia could all hit lofty price targets in the near future.
- Cramer advises investors to either invest for the long haul or stay away from these stocks.
In looking at the overall market layout, CNBC's Jim Cramer has determined that some stocks are simply "on a mission" to greatness.
"These are the stocks that blast out of orbit, and that orbit may have had them stuck for ages. And once they are in motion, they stay in motion until they get to where they need to go," the "Mad Money" host said. "You either get long or you get out of their way."
Cramer has found few stocks that are on as determined a mission as Boeing, the massive aircraft manufacturer that took the No. 1 spot in the Dow Jones industrial average for 2017.
"This stock has been going up pretty much in a straight line ever since we had the CEO, Dennis Muilenburg, on the show in December when he confirmed that business is stronger," Cramer said.
Fueled by an $18 billion share buyback, a 20 percent dividend boost and an upbeat earnings report, shares of Boeing have been soaring, closing Thursday's trading session at $356.94 a share.
"I think the stock of Boeing ... is headed for $400, where it might run out of steam, but only because it'll become the most expensive stock in the Dow," the "Mad Money" host predicted.
Cramer thinks that Mastercard's stock, $172.93 a share at Thursday's close, is on a mission to $200.
Thanks to the global shift in payments from paper to plastic, shares of Mastercard have been on a tear, up nearly 15 percent just since the start of 2018.
"Mastercard reported yet another blowout quarter, which is amazing when you consider how the bar's been raised so high after all these upside surprises," Cramer said. "This time, though, the company had a whole new angle: cryptocurrencies."
In its Thursday earnings report, Mastercard acknowledged that its customers were buying digital currencies such as bitcoin using their credit cards and said it would develop a prepaid card for companies involved in cryptocurrencies.
"That's like throwing gasoline on the fire that's been raging under Mastercard's stock," Cramer said.
3. Idexx Laboratories
Shares of Idexx Laboratories, a large veterinary care provider, have "been making a beeline to $200 and maybe beyond" since the start of 2018, Cramer said.
One of Cramer's favorite "humanization of pets" plays, Idexx beat Wall Street's earnings estimates in its Thursday morning report. Shares of Idexx closed at $194.06 on Thursday.
"Room to run," the "Mad Money" host quipped.
Finally, Cramer addressed the juggernaut that is the stock of Nvidia, a $240 stock that he said is on a path to $300.
Shares of the chipmaker — a key player in trends like video gaming, machine learning, artificial intelligence and the internet of things — have gone up far enough to raise concerns among some on the Street, including Cramer.
On Thursday, Goldman Sachs downgraded Nvidia's stock to "buy" from "conviction buy," citing volatility in the company's cryptocurrency mining business.
Cramer admitted that he, too, has told club members of his charitable trust to trim their Nvidia positions because it is "simply up too much."
"The most incredible thing about stocks that are on a mission? Once they get started, they rarely fizzle out that quickly. They are objects in motion that stay in motion. It's like a law of physics. These companies are all on jet-propelled paths higher, although they do give you nice buying opportunities whenever they stop to refuel," the "Mad Money" host said. "Otherwise, look out above and get out of the way. These stocks are going to where they have to go."