The S&P 500’s 2 Top-Performing Stocks for 2010

The S&P 500’s two top-performing stocks of 2010 are still buys going into 2011, Cramer said during Thursday’s “Stop Trading.”

Netflix added about 234 percent throughout the year, while F5 Networks gained about 154 percent. Cramer thinks they both still operate in strong, secular markets—whether it’s online streaming video or the need for faster Internet speeds—and that should keep them trending upward.

“Both of these I reiterate that I think will have another good year,” Cramer said.

If you thought that retail, as represented by the Retail HOLDRs exchange-traded fund, had run too much and was now overvalued, think again. Bed, Bath & Beyond was up big on Thursday after reporting what Cramer called a “beautiful quarter.” But given the amount of cash on BBBY’s balance sheet, he thinks the stock is still inexpensive.

Also in retail, Jo-Ann Stores JAS, one of Cramer’s least favorite in the group, caught a takeover bid from a private-equity company. And the premium at which the company is being bought also proves that the sector is not yet overvalued.

“So you’ve got both stories saying that retail has not run enough,” Cramer said, “and it makes me very bullish for 2011.”

Two stocks that once saw significant attention because of takeover bids seem to have fallen out of favor, but Cramer called that a mistake. The share price of Potash , which escaped a buyout from BHP Billiton after the Canadian government blocked the deal, is hovering where it was when the offer was still on the table. He thinks the stock “could go much higher.”

Airgas also escaped a takeover by Air Products . Cramer said that if ARG were given any historic market multiple the stock would be trading at $70, making it cheap at $62.50.

“That stock’s going to be a winner in 2011,” Cramer said of Airgas. “I would buy it now as the arbitragers throw it away.”

Lastly, Cramer still likes Apple going into 2011. He said he’d be watching the launch of a new app store on Jan. 6. And while Google is a “good stock,” he can’t get excited about it until the company releases a new YouTube or Andriod-type product that generates huge earnings.

“That’s how you get back to all-time highs for Google,” Cramer said.

When this story published, Cramer’s charitable trust owned Apple.

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