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Despite 150% gain, Cramer says ‘buy’

(Click for video linked to a searchable transcript of this Mad Money segment)

Often times when a stock gains as much as 150% in a one year period, Jim Cramer is hesitant to 'chase.' But in this case, he doesn't consider it chasing.

The Mad Money host believes that Delta airlines is very much a 'buy' despite it's massive advance and its status the 4th best performing stock in the S&P for 2013.

"I think it should be bought right here because it is benefiting from the fantastically positive merger of American Airlines and US Air," Cramer said.

That is, Cramer feels recent consolidation has reduced capacity so much, it allows all carriers to raise prices. Although higher prices are a bane for travelers they're a boon for investors. "It gives this company and other airlines a multi-year runway to make a ton of money." And Cramer doesn't think the Street has entirely caught on yet.

Looking at other top performing S&P stocks from 2013, Jim Cramer sees opportunity elsewhere too.

Image Source | Getty Images

For example, with a gain of 297%, Netflix was the best performing stock in the S&P 500 last year and again, Cramer is a buyer.

"There's a simple, dirty truth about Netflix: we would hate to admit it out loud but we would all be willing to pay more for it, that's how much we love it. To me that means there's no way it's worth only $22 billion. It's a concept too big for its market cap. I think it goes higher until we see subscriber growth peak. But because that eventually has to happen, I think if you own it you should switch into deep in the money calls to protect yourself from the downside."

Looking at Micron the second best S&P stock last year Cramer is mixed. "I still like Micron because it is part of a slap happy oligopoly in Drams, after it bought a gigantic Japanese semiconductor concern that had gone bust. And I like its exposure to flash."

However at current levels, Cramer thinks this stock is perhaps best for investors who are comfortable moving in and out of positions somewhat quickly. "At $22 billion, I think it might just be too late to stay long this stock because a couple of new factories will make both markets oversupplied," he added

Up 236% in 2013, Best Buy ended 2013 as the third best performing stock in the S&P. Although Cramer remains optimistic, he advocates a wait and see strategy for this stock.

"The problem here is that the stock has pretty much won over everyone who had been a skeptic. Now the big analyst bashers are all backers and when that happens it's better to have one foot out the door than both feet in. I think that BBY is going to have to come down to recharge but when it does, the economy's strong enough that I think you still want to buy it. "

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Read More from Mad Money with Jim Cramer
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And rounding out the top 5 S&P stocks for 2013 is Etrade, which rallied 119%. "Even after these substantial gains Cramer think the stock is cheap, "but at this point I would prefer KGC, the old Knight Capital Group."

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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