Titanic tech stocks Intel and Microsoft are two of the strongest, cheapest stocks on the market and they still have plenty of momentum on their side, "Mad Money" host Jim Cramer said Wednesday.
Now that we're back in bull market mode, Cramer said, Wednesday's pullback could be the perfect time to snag high-quality stocks. Technical indicators certainly suggest that both Intel and Microsoft could soon surge to dot-com era highs.
While Intel struggled to breach $30 a share for more than a decade, some technicians think the next stopping point could be $35. And despite the $34 ceiling keeping Microsoft's growth at bay, some think the price cloud soar to $47 in the not-too-distant future. In short, we could be looking at a 25 percent gain in Intel and a 50 percent gain in Microsoft.
"Those are some pretty spectacular moves," Cramer said. "Especially when you consider that both of these are relatively low-risk old line tech companies with cheap valuations and decent dividends."
Both stocks are huge value plays, selling for approximately 10 times earnings with growth rates of 10 to 11 percent. They also pay bountiful dividends — Microsoft yields 2.5 percent, while Intel offers up an even juicier 3 percent yield.
"These companies have matured, but they refuse to be relegated to the dust-bin of history," the "Mad Money" host said.Page 1 of 3 | Next Page