CNBC’s Jim Cramer on Friday named three industrial stocks he thinks worth owning next year, saying he expects them to outperform the sector’s best performers in 2022.
It was the best performing industrial stock in the S&P 500 this year so far Northrop GrummanAnd the Lockheed Martin And the monastery – an increase of 36.9%, 35.6% and 25.7%, respectively. Looking to the future, though, Kramer said he’d rather own the likes LarvaAnd the Illinois tool works and railway operator CSX.
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Shares of Caterpillar, which reported strong earnings two months ago, are up 12.6% year-to-date. Kramer said he preferred Caterpillar to fellow machine maker Deere.
“CAT has a lot of infrastructure exposure, and I think they’ve got support from the oil and gas industry going forward,” Cramer said. “Definitely worth owning here with 17x earnings,” he added.
Kramer confirmed that Illinois Tool Works shares fell by more than 12% in 2022 because fears of an economic slowdown overshadowed the company’s actual results. “I like it here, of course more [so] He said, “But I give you my blessing to buy ITW.”
And Cramer acknowledged that transports like the CSX — down about 16% so far — are “absolutely hated” on Wall Street. However, he said he believes CSX is attractive to investors with extended time horizons.
“For me, it’s 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 down. In the meantime, CSX mints money through coal,” he said. . “I think it is worth buying until 2023.”