Stock Picks: Jim Cramer's Top Stocks for the 2011 Holidays
Did you consider stocks as stocking stuffers? Jim Cramer did, and he graced us all with a list of his favorite 2011 holiday stock picks.
Cramer, host of CNBC's Mad Money, thinks a few well-timed shares of companies make an excellent holiday gift. Interested?
The following are Kramer's top picks. He feels these are attractive names, and many are retailers he thinks are poised to benefit from better-than-expected sales this holiday shopping season. (Click here to access free, interactive tools to analyze these ideas.)
1. Deckers Outdoor Corp. (NAS: DECK) : Engages in the design, production, marketing, and brand management of footwear and accessories for outdoor activities and everyday casual lifestyle use. Market cap of $3.26B. This footwear and accessories company made the list because Cramer believes it should see major savings and a nice boost to earnings from bringing its European distribution arm in-house. He also sees more growth for its men's and luxury women's boot lines.
2. The Home Depot (NYS: HD) : Operates as a home improvement retailer. Market cap of $64.62B. Cramer says Home Depot has an attractive 3% dividend yield, and believes the company is big enough to support itself if the stock market gets slammed with sell-offs. "This is the kind of stock you can own, in part because if Europe does cause us to crash, Home Depot won't fall as hard as the rest of the market ... and it will bounce back much harder," Cramer said.
3. International Paper Co. (NYS: IP) : Operates as a paper and packaging company with operations in North America, Europe, Latin America, Russia, Asia, and North Africa. Market cap of $12.66B. This company has the best margins in the business, says Cramer, and that it can only get better with its pending acquisition of Temple-Inland. A 3.6% yield dividend doesn't hurt either.
4. Macy's (NYS: M) : Operates department stores and Internet websites in the United States. Market cap of $13.38B. Thanks to rebounding consumer spending Macy's hit its 52-week high early in December, and Cramer thinks there's more momentum to price in because consumers have been "spending like mad" this holiday season.
5. McDonald's (NYS: MCD) : Operates as a foodservice retailer worldwide. Market cap of $100.89B. The fast-food chain operates almost 33K restaurants in 117 countries and has a "superbly managed company with terrific execution," according to Cramer. He says the business is growing into Asia Pacific, the Middle East and Africa, and that the chain can survive just about anything.
6. Pier 1 Imports (NYS: PIR) : Operates as an importer and specialty retailer of imported decorative home furnishings and gifts in the United States, Canada, and Mexico. Market cap of $1.50B. Cramer calls this company the "best turnaround story in all of retail" after it avoided bankruptcy in 2009. Since then Cramer says its focus on smaller and less-expensive pieces makes it one of the strongest performers out there.
7. PVH Corp. (NYS: PVH) : Designs and markets branded dress shirts, neckwear, sportswear, footwear, and other related products worldwide. Market cap of $4.64B. Cramer says this apparel maker is constantly improving. Thanks to its Calvin Klein, IZOD and Van Heusen and Tommy Hilfiger brands it is now the third-largest apparel company in the world.
8. Saks Inc. (NYS: SKS) : Operates fashion retail stores in the United States. Market cap of $1.58B. Cramer believes high-end luxury shopping and low-end shopping will thrive the most. There's nothing more symbolic of the luxury market than Saks, he says. The company is down more than 10% this year but the CEO told Cramer the holiday season has been going well.
9. Tanger Factory Outlet Centers (NYS: SKT) : Operates as a real estate investment trust (REIT). Market cap of $2.57B. Cramer thinks this company will thrive regardless of what happens in Europe. The REIT is the only publicly traded pure play on businesses and is holding up better than other retailer REITS.
10. Tractor Supply Company (NAS: TSCO) : Operates retail farm and ranch stores in the United States. Market cap of $5.03B. This tractor supply company targets hobby farmers and has a "terrific niche," says Cramer. It is nearly immune to online competition and because it is mostly located in rural areas and outer suburbs it faces less competition with big box retailers.
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Rebecca Lipman does not own any of the shares mentioned above.
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