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

Lululemon is partnering with the NFL to release apparel for all 32 teams
Business

Lululemon is partnering with the NFL to release apparel for all 32 teams

Sign at the entrance to the Lululemon store in Midtown Manhattan. Erik Mcgregor | Lightrocket | Getty Images Lululemon is partnering with the NFL to launch an apparel collection featuring the logos of all 32 NFL teams. It will mark the first time the retailer has offered officially licensed products for the NFL or any […]

Read More
American Airlines is arriving late to the luxury travel boom. Can it catch up?
Business

American Airlines is arriving late to the luxury travel boom. Can it catch up?

An American Airlines Airbus A321 taxis at San Diego International Airport as a United Airlines airplane departs on August 24, 2024 in San Diego, California. Kevin Carter | Getty Images News | Getty Images FORT WORTH, Texas — American Airlines started pouring customers Champagne Bollinger in its top-tier lounges and cabins this fall. But at […]

Read More
One in three Manhattan condo owners lost money when they sold in the last year
Business

One in three Manhattan condo owners lost money when they sold in the last year

A version of this article first appeared in CNBC’s Inside Wealth newsletter with Robert Frank, a weekly guide to the high-net-worth investor and consumer. Sign up to receive future editions, straight to your inbox. More than a third of the condo apartments sold in Manhattan over roughly the past year sold at a loss, although the top end of […]

Read More