Jim Cramer of CNBC on Thursday presented a list of five industrial stock investors that they should consider adding to their portfolios.
“After years in which the market has been chasing growth at any cost, we are now in a pivotal post-momentum environment where Wall Street wants strong companies with easily justifiable valuations,” said the Mad Money host.
Cramer identified five industrial stocks that fit this requirement.
Here is the list:
- General Electric
- United Rentals
- Howmet Aerospace
- Textron
- Johnson Controls
To come up with this list, Kramer started with nine industry names. He said he eliminated Pak Car and Cummins because the freight industry, including trucking rates, is slowing. Stanley also ruled out Black & Decker and Fortune Brands Home & Security to avoid housing stocks while mortgage rates soar.
The original nine industrial companies came from Cramer’s curated list of S&P 500 companies that were included due to reasonable valuations and significant earnings growth. This is the same list Cramer used to pick the top travel, entertainment, financial and semiconductor stocks earlier this week.
“I spent a whole week highlighting these stocks, and now you have 20 to choose from. I want you to keep it on your shopping list,” he said.
Here’s all the growth at a reasonable price, or GARP, as Cramer shares highlighted this week: