Jim Cramer Says These 12 Stocks Aren't ‘Your Father's Cyclicals'

Bryan Bedder | CNBC
  • CNBC's Jim Cramer said Wednesday he thinks many investors are wrong about 12 companies that historically were considered cyclical stocks.
  • Stocks that were once subject to the whims of the macroeconomic market have moved to reposition themselves.

CNBC's Jim Cramer said Wednesday he thinks many investors are wrong about 12 companies that were historically considered cyclical stocks.

"These are not your father's cyclicals," Cramer said.

Historically, Cramer said, these stocks tended to be swayed by the broader macroeconomic picture, and by prognostications from Federal Reserve officials. But this "dirty dozen" isn't so dirty anymore, he said.

Here are the 12 stocks that Cramer thinks aren't as cyclical, and have made major strides toward repositioning themselves.

  • Cummins and Ingersoll Rand are both major engine manufacturers that have pivoted toward a zero-emissions, industrial future, Cramer said.
  • Cleveland-area manufacturers Eaton and Parker-Hannifin are on his list. Cramer said he used to bet against Eaton in down cycles because it was a manufacturer of connectors and gauges, but now both companies are focused on sustainability.
  • Carrier and Trane are two companies that Cramer said he "couldn't be more wrong" about. He pointed to their efforts to transform air conditioning into a greener product.
  • Caterpillar, which is showing a new focus on data science.
  • Dover, which Cramer now says is about "clean energy."
  • Paccar, which is moving into battery-powered trucks.
  • Johnson Controls, which Cramer said has an emphasis on sustainability, safety and security.
  • United Rentals, which Cramer said ticks multiple boxes for ESG benchmarks.
  • And Rockwell Automation, which is moving to become a global leader in digital transformation, according to a company press release.

These companies have figured out how to head off decarbonization and move toward sustainability, Cramer said.

"The transformation is real," he said. "Saving the planet's become a much more reliable business than despoiling it."

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