Jim Cramer: Exxon Mobil, Bank of America, Cisco, Schlumberger

Exxon Mobil Corp. (XOM)'s stock is being purchased by mutual funds seeking to show they have oil exposure, driving the shares higher, Jim Cramer said on his ``Mad Money'' television program on CNBC.

While the company is ``the most troubled of the big oils,'' it's worth buying because it has been ``anointed'' as a ``core holding'' by mutual fund managers, said Cramer, a market commentator and former hedge-fund manager.

Because it has climbed beyond other oil companies, index funds are also seeking to buy shares of Exxon Mobil to keep their funds aligned with their indexes, he said.

Chevron Corp. and ConocoPhillips are both fundamentally better companies, Cramer said. Still, he said, the ripple effects of large investors' decisions will cause Exxon Mobil to outperform other oil majors until the end of the year.

Other ``anointed'' stocks include Boeing Co. (BA), Bank of America Corp. (BAC), Google Inc. (GOOG), Cisco Systems Inc. (CSCO), Apple Computer Inc. and Schlumberger Ltd. (SLB)

In response to a caller, he said the oil company with the most possibility for gains was Devon Energy Corp. (DVN) He told a caller that Duke Energy Corp. (DUK) should be avoided lest they cause investors to fall asleep.

Cramer recommended Research In Motion Ltd. (RIM), Marvell Technology Group Ltd., UnitedHealth Group Inc. (UNH), Darden Restaurants Inc. (DRI), Boston Scientific Corp. (BSX), Johnson & Johnson, Toyota Motor Corp. (7203), Terex Corp. (TEX), Halliburton Co. (HAL) and Royal Bank of Canada (RY) in response to questions during the show's ``Lightning Round'' and ``Sudden Death'' segments.

He also told viewers to avoid Palm Inc., Micron Technology Inc. (MU), Burger King Holdings Inc., Pier 1 Imports Inc. (PIR), General Motors Corp., H&E Equipment Services Inc. (HEES), Sun Healthcare Group Inc., Arena Pharmaceuticals Inc. (ARNA) and Cummins Inc. (CMI)

He said he owns shares of Marvell Technology, Johnson & Johnson (JNJ) and Halliburton for his charitable trust.

To contact the reporter on this story: Steven Bodzin in San Francisco at sbodzin@bloomberg.net.

To contact the editor responsible for this story: Aimee Sullivan at asullivan@bloomberg.net.

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