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Cramer Eyes the Industrial Trade

Tuesday, 5 Jul 2011 | 7:26 PM ET
Cramer on Firms About to Takeoff
Early cycle businesses do well when the economy first emerges out of a recession, says Mad Money host Jim Cramer.

When it comes to great American manufacturers, Cramer definitely endorses Honeywell International, a diversified outfit that makes everything from aircraft engines and avionics components to high-performance specialty materials and auto parts. There’s also a heating, ventilation and air-conditioning segment in here as well, and a security-systems division, too.

How do so many seemingly disparate pieces come together to make a viable business? Honeywell’s ability to service several sectors is like a “beautiful webbed mosaic,” Cramer said, where each piece works together to form a better company.

The company plans to grow its emerging market exposure and more than double its new product sales. It also projects 7 to 9 percent revenue growth through 2014. And Cramer thinks Honeywell can meet its goals thansk to its exposure to secular growth themes that work regardless of the health of the global economy.

The company is also levered to important cyclical themes like aerospace and the auto and trucks market.

If homegamers want a direct play on the truck bull market, Cramer suggests looking no further than Cummins .

Cummins is the leader in engines that go into trucks, he said. While the stock has recently been weak, the company had a strong quarterly report in April. Revenues rose 50 percent with strength around the globe.

“America is still a great manufacturing nation, and Honeywell and Cummins are two of our greatest manufacturers,” Cramer said. “Add them both to your industrial shopping list."

When this story published, Cramer’s charitable trust owned Cummins.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com

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