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

American Eagle shares rise on retailer’s Travis Kelce partnership
Business

American Eagle shares rise on retailer’s Travis Kelce partnership

American Eagle launches AE x Tru Kolors by Travis Kelce. Courtesy: American Eagle Shares of American Eagle rose Wednesday morning after the apparel company announced a collaboration with football star Travis Kelce, just a day after he proposed to singer Taylor Swift. The stock was up roughly 5% in early trading. Kelce’s sportswear brand, Tru […]

Read More
Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo
Business

Cracker Barrel shares rise after restaurant chain gets rid of controversial new logo

A Cracker Barrel sign featuring the old logo is seen outside of a restaurant on August 21, 2025 in Homestead, Florida. Joe Raedle | Getty Images Shares of Cracker Barrel Old Country Store rose 3% Wednesday after the restaurant chain said it would scrap its new logo and return to the original one, amid mounting […]

Read More
An indicator of commercial real estate transaction volume just improved for the first time this year
Business

An indicator of commercial real estate transaction volume just improved for the first time this year

Housing block in Warsaw, Poland Busà Photography | Moment | Getty Images A version of this article first appeared in the CNBC Property Play newsletter with Diana Olick. Property Play covers new and evolving opportunities for the real estate investor, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public […]

Read More