There’s a common and bankable theme among all these manufacturers that Cramer has recommended on Tuesday. Whether car or airplane or tractor or mining equipment, they all need coatings. This is a $90 billion market with the potential to reach $110 billion by 2013, Cramer said, and “that’s probably a low-ball number.”
And who makes these coatings? Chemical companies, of course. And Cramer’s two favorites in the group are DuPont and PPG Industries .
These two companies make more than just coatings, though. For DuPont, it’s performance chemicals like Teflon, performance materials like polymers and resins for the autos, aerospace and oil industries, and even products such as the Kevlar used in bullet-proof vests. DuPont’s also known for its electronics and communications business, where it produces materials used in solar panels and flat-panel TVs.
DuPont is also a play on a second bull market as well, namely agriculture. In this space, DD makes everything from genetically modified seeds to crop-protection chemicals like insecticides and weed killers.
Cramer also likes DuPont’s international business, as it gets 64 percent of sales from outside the US. And he’s a big fan of the dividend, which yields north of 3 percent.
What about PPG? Well, the number-two player in the coatings business benefits from both the bull markets in autos and aerospace.
There’s a commodity chemicals business here as well. PPG makes caustic soda, which is used in alumina, soap and other cleaning products, as well as chlorine, and the company holds what Cramer described as “an enormous amount of pricing power” in this space.
Other things to like about PPG: Low prices for natural gas, an important raw material, help boost margins. Asian sales, a big driver for this international company, are up five times higher than those in 2001. And the dividend, after 40 consecutive years of increase, is solid.
"Industrial America is alive and well," Cramer said. “PPG and DuPont [are] two more made-here stocks that belong on your shopping list,”
Call Cramer: 1-800-743-CNBC
When this story was published, Cramer's charitable trust owned DuPont.
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