Jim Cramer’s 2022 forecast for the worst-performing Dow stocks in 2021

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CNBC’s Jim Cramer on Wednesday broke down his 2022 outlook for last year’s worst-performing stocks in the Dow Jones Industrial.

The “Mad Money” host also gave his forecast for the blue-chip index’s best performers.

“There are a few comeback stories in the dogs of the Dow, but for the most part I don’t expect these dogs to have their day in 2022,” Cramer said.

Walt Disney

Walt Disney shares fell 15% last year, which Cramer said was not a fun experience because his charitable investment trust owns the stock. However, Cramer said he believes the media and entertainment giant will start to get more credit for its “perfect balance of at-home, at-theater and on-vacation assets” once the Covid pandemic calms down.

Verizon

“These phone and cable companies are basically competitive utilities,” Cramer said, describing that as a “terrible place to be.”

“I don’t know how Verizon can become something else. At the moment, it’s pretty much a higher yielding bond … but the stock went down 12% last year so the offset of the yield didn’t help.”

Boeing

A pilot waves as a Boeing 777X airplane taxis during its first test flight from the company’s plant in Everett, Washington, U.S. January 25, 2020.

Terray Sylvester | Reuters

Amgen

Cramer criticized Amgen’s recent performance and its future outlook, calling the drugmaker’s stock “a dug.” He added, “I thought Amgen was supposed to be a growth company, but as biotech’s go, it’s a fossil.”

Honeywell

Honeywell, which fell 2% in 2021, is one of Cramer’s top stock picks for 2022. He said Wednesday he believes in the industrial conglomerate’s management team, but attributed a large amount of the stock’s challenges to the company’s aerospace unit.

Merck

Cramer called Merck’s recent stock performance “extremely disappointing.” While the stock rose 2.43% Wednesday, Cramer said he’s not sure “what can sustain the rally” and suggested investors sell shares.

Visa

A pedestrian wearing a protective mask walks past Visa Inc. headquarters in Foster City, California.

David Paul Morris | Bloomberg | Getty Images

Walmart

Walmart shares have struggled over the past year, and Cramer said he’s rethinking his charitable trust’s ownership of the retail behemoth.

“If they can’t get more users of their [membership program, Walmart+],” Cramer said he may use future strength to sell the stock “because there are plenty of more consistent retailers.”

3M

Michael Roman, CEO, 3M

Scott Mlyn | CNBC

Industrial giant 3M had “a tough year and yet it still finished in the black, despite several guide downs based on several different divisions — uncharacteristic for this great company,” Cramer said. “The stock doesn’t seem to want to go much lower here, but I can’t think of anything that could turn it around,” he added.

Dow Inc.



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