Jim Cramer says these 6 cyclical ‘smokestack’ stocks may be worth owning

Jim Cramer says these 6 cyclical ‘smokestack’ stocks may be worth owning


Jim Cramer explains why the rally in cyclical stocks is 'shocking'

CNBC’s Jim Cramer on Monday offered investors a list of cyclical stocks that have “caught fire” recently, making them potential great additions to portfolios.

“Sell the techs into any strength … because they’re right in the middle of the Federal Reserve’s blast zone. But as for the cyclical smokestack stocks? Many of them could be worth owning, he said.

Here is his list of cyclical names that have soared in recent weeks:

  1. Boeing
  2. Caterpillar
  3. Deere
  4. Dow
  5. Honeywell
  6. Nucor

While conventional Wall Street wisdom suggests that investors should avoid cyclical names in a recessionary environment since their earnings tend to follow the state of the economy, there are several factors that may be pushing these stocks higher, according to Cramer.

For example, it appears that the Federal Reserve’s interest rate hikes seem to be mostly impacting tech and speculative assets like crypto. That means it’s possible the central bank doesn’t need to raise rates enough for industrial stocks to also get crushed, he said.

In addition, there are secular trends that could be pushing these stocks higher. Boeing and Honeywell have aerospace exposure during a global travel boom. Caterpillar, Deere and Nucor could benefit from the Biden Administration’s infrastructure bill.

“These are great companies that have positioned themselves in some terrific end markets and dominated their industries to the point where potential customers have no choice but to turn to them,” Cramer said.

Disclaimer: Cramer’s Charitable Trust owns shares of Honeywell.

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.



Source

Patrick Mahomes is investing in his love for coffee — and isn’t thrilled about an 18-game season
Business

Patrick Mahomes is investing in his love for coffee — and isn’t thrilled about an 18-game season

Kansas City Chiefs quarterback Patrick Mahomes has added “coffee entrepreneur” to his already packed resume. The three-time Super Bowl champion has invested in Throne Sport Coffee, adding to the 29-year-old superstar’s portfolio off the field. As his Chiefs and the rest of the NFL gear up for the upcoming season, Mahomes spoke to CNBC about […]

Read More
Business class+? Delta says segmentation is coming to high-end cabins
Business

Business class+? Delta says segmentation is coming to high-end cabins

Nurphoto | Nurphoto | Getty Images Delta Air Lines is studying new types of airplane tickets — this time in the premium cabins at the front of the plane. Airlines spent years slicing up their coach cabins, from extra legroom seats to bare-bones basic economy fares that don’t allow changes or include a seat assignment. […]

Read More
Trump’s tariffs on Brazil could make your coffee even more expensive
Business

Trump’s tariffs on Brazil could make your coffee even more expensive

President Donald Trump’s proposed 50% tariff on Brazilian imports is bad news for coffee drinkers. Brazil, the largest U.S. supplier of green coffee beans, accounts for about a third of the country’s total supply, according to data from the U.S. Department of Agriculture. Coffee beans need to grow in a warm, tropical climate, making Hawaii […]

Read More