Jim Cramer on CNBC has provided insights on five stocks that have a higher chances of continuing to grow in the coming months. The five stocks that made their way into the watchlist of stocks worth to be purchased are: The Walt Disney Company (NYSE:DIS), Intel Corporation (NASDAQ:INTC), Caterpillar Inc. (NYSE:CAT), Merck & Co., Inc. (NYSE:MRK) and Cisco Systems, Inc. (NASDAQ:CSCO). Cramer believes that these stocks’ prospects have improved over the past few months, but their share price does not reflect that improvement.
Caterpillar Inc. (NYSE:CAT), according to Mr. Cramer, has surged by 33% since the Dow crossed the 16,000 mark and 20% up this year alone. Despite the recent resurgence of the global economy, the stock has not returned to its peak of 2011.
“Even though the averages keep making new all-time highs, Caterpillar is still more than six bucks of its own all-time high of $116 and change,” said Mr. Cramer
Cramer also highlighted that Caterpillar Inc. (NYSE:CAT) is in line to gain up to $7 a share as of next year. Caterpillar remains a strong buy according to Cramer at the back of rebounding nonresidential construction and the booming oil and gas business worldwide.
The Walt Disney Company (NYSE:DIS) s another stock worth the buy despite not being cheap in the market. Its stock is already up by 13% this year while commanding a 16% long-term growth rate. The Walt Disney Company (NYSE:DIS) has got a lot of things going for it at the back of its hit films star wars and Pixar marble; these films are consistent winners sure to generate amazing returns and sequels.
Intel Corporation (NASDAQ:INTC) is another stock that takes its seat on the watch-list having grown by 20% this year alone. New leadership and ingenuity are aspects that give it a nod as a possible buy.
“What I really like about Intel is that it has got new leadership, ingenuity,” said Cramer.
The new leadership according to Cramer will focus on returning maximum value to Intel Corporation (NASDAQ:INTC)’s shareholders.
Merck & Co., Inc. (NYSE:MRK) might have fallen in the past on hard times, but it is slowly gaining its share in the industry, seen by the fact that it is 18% up since the start of the year. The company has already sold its consumer product division for 14 billion.
Cisco Systems, Inc. (NASDAQ:CSCO) marks its way into the top 5 best stock stocks worth the buy. The company is the fifth best performer in the Dow since November. The company according to Cramer has a fantastic balance sheet seen by the fact it has been buying back a good amount of stock. Increased orders from companies in North America looks to be a game changer for Cisco Systems, Inc. (NASDAQ:CSCO) going forward.
Disclosure: none
