Industrials did relatively well in an otherwise tumultuous 2022 for the equities market and the sector, as per Jim Cramer, will likely remain resilient in the coming year as well.
Here are the three industrial stocks he’s particularly bullish on for 2023.
Caterpillar Inc (NYSE: CAT)
At 17 times, Cramer says this construction equipment manufacturer is still trading at a reasonable valuation despite a more than 40% increase in its stock price since late September.
I like it almost as much as Deere. Caterpillar has much more exposure to infrastructure. I think they also get a boost from the oil and gas industry and the private oil and gas companies are still drilling like mad.
In its latest reported quarter, the Irving-headquartered firm came in well above the Street estimates as Invezz published here.
Illinois Tool Works Inc (NYSE: ITW)
According to the Mad Money host, this one is a very well run global industrial company that’s worth owning here at 23 times earnings versus its historical average of about 26.
This stock has been slammed this year due to slowdown worries even though the company keeps beating the numbers. In the most recent quarter, they had 16% organic growth.
ITW currently pays a dividend yield of nearly 2.50%.
CSX Corporation (NASDAQ: CSX)
Lastly, Cramer is constructive on this rail transportation company that’s currently down about 15% for the year.
I’m a big transport fan. They’re totally hated, some have been punished enough and that’s how I feel about the great CSX. The East Coast railroad for me is a long-term story. Meanwhile, CSX is just minting money with coal.
Earlier this week, the Nasdaq-listed firm was named to the Dow Jones’ Sustainability Index. It had $2.31 billion worth of cash and equivalents at the end of its third financial quarter.
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