Cramer: 'These Stocks Should Be Bought Aggressively'

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It seems the Street is getting behind two of Cramer's favorite spec plays.

"After a pronounced but brief period of underperformance, two of my favorite speculative ideas for 2013, airlines and mortgage insurers are coming back," said Cramer on Monday's broadcast.


Looking at the airlines, new research seems to confirm that pros are growing substantially more bullish on the sector; largely because the recent consolidation has generated a better supply versus demand dynamic. In turn airlines can charge higher prices.

Just this week, analysts at Deutsche Bank issued new research which said the airlines were on track to more than double March operating profit.

And in the space, "Deutsche is predicting 42% upside for Delta," Cramer said with enthusiasm.

Those same Deutsche analysts are also looking for gains elsewhere in the sector. "They expect a 37% increase for United Continental, 32% for Southwest and 27% for US Airways," Cramer added.

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Cramer however sees the potential gains a little differently. He thinks the best way to play the space is with US Air as a bet on a successful merger with AMR.

"The deal should create the world's largest airline and will most likely not be challenged by upstarts or regulators," said Cramer.

Once the merger is completed, the combined company is expected to become the largest airline in the world, with a fleet of 1500 aircraft.

Read More: Wait, What? Cramer Likes an Airline Stock

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Mortgage Insurers

Looking at another favorite theme, Cramer noted that Macquarie just upgraded Radian, as a favorite stock in the mortgage insurers group increasing the rating from Neutral to Outperform. "They said it has tremendous earnings momentum," Cramer explained.

In an improving real estate market, Cramer believes companies that write mortgage insurance are in the sweet spot.

That is, as more people buy homes more people will need mortgage insurance. And with tighter lending standards, those that qualify for mortgages are in a stronger financial position.

Also, Cramer believes that Radian is perhaps the best in this business.

Read More: This Housing Spec Is a Steal?

The Bottom Line

All told, Cramer remains very positive on the themes outlined above and it appears the Street is starting to share his bullish outlook.

Despite recent gains, both Cramer and Street analysts are looking for more upside.

"I think we're much closer to the beginning of these moves than the end. These stocks should be bought and bought aggressively," Cramer said.

Call Cramer: 1-800-743-CNBC

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