The theme of “Investing in America” is a concept fully endorsed by Mad Money. Cramer ran a series with the same name back in December 2009, updated his list in September 2010 and is now taking that theme on the road—to Detroit.Don't miss it on Wednesday, Jan. 12 at 6PM ET!
But aside of Ford, who else makes Cramer's list of top American companies? We're rerunning the story for you now, with one small but significant update, because while there's a ton of doom and gloom from analysts and the press about the U.S. economy, these manufacturers are thriving right now.
“We are witnessing the first stages of its rise,” Cramer said of the sector, “with our best-of-breed industrial companies … poised to make fortunes as the recovery in the world’s economies really begins to heat up.”
That means if you’re going to buy these stocks, then you better do so soon. Cramer’s strategy? Start a position in any the following 10 names the next time you get a pullback in share price.
Just who are these American industrial titans? Click ahead to find out!
Re-posted 7 January 2011
The world’s largest manufacturer of construction and mining machines operates a “terrific” engine business, Cramer said, and an “unparalleled” global distribution network.
Caterpillar plans to collect $60 billion in revenues in 2012 and earn up to $10 a share that year, which means the stock at press time was trading at about nine times 2012 earnings despite a 20% long-term growth rate. That’s just too cheap for a company this good.
Another quick note on CAT: Bucyrus once graced this story as well, as one of Cramer's favorite American companies. But Caterpillar has since bought BUCY for $8.6 billion, forcing Cramer to remove the mining-equipment maker from this list. So instead of 11 top American companies, now there are 10.
When this story published, Cramer's charitable trust owned Caterpillar.
The company boasts a title similar to that of Caterpillar: While CAT rules the construction and mining-equipment market, Deere dominates in agricultural and farm equipment. And there’s a bull market happening in ag right now.
The greater the demand for crops, the more farmers are willing to invest in increasing their output. That demand, according to Cramer, is getting “increasingly enormous.” Other reasons to like DE: one, its great presence in Brazil; and two, it’s a great way to play the Environmental Protection Agency’s ethanol mandates.
When this story published, Cramer's charitable trust owned Deere.
This diversified technology and manufacturing outfit makes everything from aircraft engines to security systems, and its ability to service several sectors resembles a “beautiful mosaic,” Cramer said, where each piece works together to form a better company.
Cramer credited great management in CEO Dave Cote for the company’s success, saying it “only gets better from here.”
The launch of Boeing’s much-anticipated, and much-delayed, 787 Dreamliner aircraft launched a new cycle in the aerospace industry. That new bull market will benefit the plane maker itself and every company that builds parts for the 787.
As for Boeing itself, Cramer called it “best in breed” and recommended it right along with Honeywell International, which makes, among other parts, the Dreamliner’s flight-control system.
When this story published, Cramer’s charitable trust owned Boeing.
CEO Alan Mulally’s turnaround of this company may be “the greatest comeback story of a generation,” Cramer said. He took Ford from near collapse to arguably the top of the American auto biz.
How’d he do it? By slashing production capacity, trimming the salaried workforce and delivering the kinds of cars that customers want these days—smaller, more fuel-efficient ones—while moving away from trucks.
Don't miss Cramer's exclusive interview with Mulally in Detroit—Wednesday, Jan. 12 at 6PM ET.
To meet the rising demand for commodities and to replace outdated machines, Cramer said mine operators are expected to increase spending on equipment in the next 10 years. He thinks Joy Global will benefit as a result.
Cramer said multi-industry companies, like 3M, outperformed the S&P 500 in the last two economic recoveries. That’s because as different businesses begin to improve, the St. Paul, Minn.-based company benefits by being a diversified industrial player.
It can benefit from the early, middle and late stages of the business cycle. The “Mad Money” host also likes 3M because of it’s exposure to international markets.
As the economies of the world improve, certain business segments come back before others. But multi-industry companies like Emerson Electric—which operates in everything from process management for the oil-and-gas biz to industrial automation to climate control, among other areas—benefit from each part of the cycle. Cramer also recommended Emerson because it’s exposed to emerging markets around the world.
This company is benefiting from two bull markets, Cramer said: one in chemicals and another in agriculture. He also likes that a majority of its sales is from outside of the U.S., giving it great placement in key overseas markets. And it pays a juicy dividend, too.
With a bull market in the chemicals business, Cramer likes PPG Industries. As markets like the autos sector rebound, the stock’s growth should takeoff. The Pittsburgh-based conglomerate is also expanding into the aerospace industry, which is also bouncing back.