Cramer says that upward trend in foreign markets is one of the reasons Coke should go much higher. New products are helping, too. Coke Zero is a smash hit. Plus, the company seems to have a newfound desire to buy other businesses. Case in point, its $3 billion bid for vitamin-water maker Glaceau. Cramer thinks a continued move away from carbonated beverages should have a positive impact on the stock. So if you missed the latest pop, you might still have a chance to enjoy another one.
Then there’s Pepsi. New CEO Indra Nooyi has taken the company’s swing division, Frito-Lay, and pumped new life into it. She took what was once seen as an unhealthy food business and launched a healthier line of snacks to rebrand its image. Cramer credits this move for Pepsi’s accelerating growth of 5% to 7%.
Like Coke, Pepsi’s a ROWer – Cramer parlance for having exposure to the “Rest of the World.” He says it has international growth in the mid-teens, and he thinks it should go higher. Even better, the company has proved itself a forward-thinker. It aired the top five commercials for young people during the Super Bowl, which it took from a YouTube contest.
Two companies brought back to full vitality by two people. Cramer thinks that makes for two great buys.
Bottom Line: Cramer says Coke goes to $60, and Pepsi to $65. You might want to get on board.
Questions? Comments? madmoney@cnbc.com