Cramer: These 2 Sectors Could See Agressive Growth in 2013

Jim Cramer HatDelta (NYSE:DAL) advanced as much as 1.4 percent in morning trading on Tuesday. The reason? A strong bullish thesis, if pundits like Jim Cramer and the analysts at Deutsche Bank are correct.

Deutsche Bank reiterated a Buy rating on Delta stock this week with a price target of $20, a 34 percent upside on its Monday closing price of $14.93. Highlighting the stock and the Deutsche Bank price target on yesterday’s broadcast, Cramer said that the airline sector was one of his favorite speculative plays for 2013.

NEW! Discover a new stock idea each week for less than the cost of 1 trade. CLICK HERE for your Weekly Stock Cheat Sheets NOW!

The reasons why are fairly straight forward. Years of bankruptcy and consolidation have yielded a handful of highly-resilient and cost-conscious carriers. An improved supply-versus-demand dynamic through 2013 should afford airlines the opportunity to increase ticket prices. Coupled with a recent decline in fuel prices — from $3.22 per gallon in February to $2.97 per gallon in March — and a variety of new revenue initiatives such as luggage-to-door service, the stocks could see some positive price action.

According to Cramer, the Deutsche Bank analysts are also expecting “a 37 percent increase for United Continental (NYSE:UAL), 32 percent for Southwest (NYSE:LUV) and 27 percent for US Airways (NYSE:LCC).”

Moving on, Cramer indicated that mortgage insurers were another top speculative pick for 2013…

More Articles About:   , , , ,