AT&T could rank among the best performing Dow stocks in 2012, Cramer said Tuesday.

The wireless communications company’s stock had been a laggard in 2011 thanks to the collapse of its plans to acquire rival T-Mobile USA.

In March 2011, AT&T announced plans to purchase T-Mobile from Deutsche Telekom of Germany for $39 billion. Had the deal gone through, AT&T would have become the largest cellphone company in the U.S.

AT&T’s proposal was met with opposition from the  Department of Justice and the Federal Communications Commission, though.

In August 2011, the Justice Department sued to block the merger, saying it would reduce competition and lead to higher prices. Months later, the companies withdrew their application to the Federal Communications Commission after its chairman also opposed the deal. The FCC claimed the merger would result in a massive loss of U.S. jobs and investment, and significantly diminish competition, while the DOJ said it would lead to higher wireless prices for consumers and businesses.

After facing such fierce opposition from government regulators, AT&T last month ended its proposed purchase of T-Mobile.

But the stock is now pricing in market share losses that haven’t happened, so the “Mad Money” host thinks it’s just way too cheap at current levels.

“Now the company can go back to focusing on the fundamentals, building its business with small deals, and coining money courtesy of its near-duopoly status in wireless,” Cramer said.

AT&T also pays a juicy dividend yield. Cramer tends to like high-yielding stocks because they pay investors to wait until the stock market calms and the economy improves. The dividends can be reinvested into the stock.

When this story was published, Cramer's charitable trust owned AT&T.

—CNBC.com and Reuters contributed to this report

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