CNBC’s Jim Cramer on Friday identified three industrial stocks he believes are worth owning next year, saying he expects them to outperform the sector’s top performers in 2022. will do.
Here are the best performing industrial stocks in the S&P 500 so far this year northrop grumman, Lockheed Martin And Deere – 36.9%, 35.6% and 25.7% respectively. Looking ahead, however, Cramer said he would prefer to Kamla, Illinois Tool Works and rail operator csx,
Shares of Caterpillar, which reported strong earnings two months ago, have climbed 12.6% year to date. Cramer said he favors Caterpillar over fellow machinery maker Deere.
“CATs have a lot of exposure to infrastructure, and I think they’ve got a boost with the oil and gas industry coming in,” Kramer said. “Definitely worth 17 times earnings here,” he said.
Shares of Illinois Tool Works are down more than 12% in 2022 as fears of an economic recession overshadowed the company’s actual results, Cramer argued. “I like it here, definitely more [so] On pullbacks,” he said. “But I give you my blessing to buy ITW.”
Transports like CSX — down about 16% year to date — are “absolutely hated” on Wall Street, Cramer acknowledged. However, he added that he believes CSX is attractive to investors with extended time horizons.
“To me, this is a long-term story. I see our East Coast ports getting more business as shipping companies adjust to the fact that our West Coast ports are idle. Meanwhile, CSX is just Making money with coal,” he said. “I think it’s worth buying in 2023.”
