Chevron, Eli Lilly, Honeywell, Bausch Health
“I love Chevron because I just think oil is still undervalued even after last year. Oils have a new discipline,” Cramer said. He also noted that in September, Chevron announced plans to triple capital investment in its low-carbon power units. Chevron is up almost 42% in the past 12 months and just over 5% already in 2022.
Cramer highlighted Eli Lilly’s experimental treatment for Alzheimer’s disease called donanemab, as well as a “going to be important” diabetes drug called tirzepatide. Cramer said another reason he’s drawn to Eli Lilly’s actions is because he thinks the general sentiment towards drug companies is too negative. While Lilly has risen nearly 59% in the past 12 months, the stock got off to a slow start in the first three trading days of 2022, down around 5% year-to-date. .
Cramer said he liked industrial conglomerate Honeywell, but noted that it generally lags behind its peers when it comes to upward moves. The share is around 2.6% in the past 12 months. It’s a good start in 2022, up about 2.55% since the start of the year.
On Tuesday’s episode of “Mad Money,” Cramer said he expects Wall Street to forgive stocks like Honeywell and other industry names like Deere & Co. and Boeing this year. “At this point in the business cycle, the playbook says you have to go with more tangible companies that are doing real things and generating real profits,” Cramer said Tuesday.
Cramer’s charitable trust took a position in Bausch Health on December 20, adding to the portfolio’s exposure to health stocks. Earlier Wednesday, the trust raised its price target on Bausch Health shares to $ 36, from $ 29. Bausch Health shares are essentially flat at the start of 2022. However, in the past 12 months, the stock has risen by more than 26%.
In “Halftime Report,” Cramer touted Bausch Health’s plan to split into three separate entities, including an eye health-focused business, a medical aesthetics unit, and a diversified pharmaceutical company. “I love big breakup stories,” he said. Of the planned breaks at Johnson & Johnson, General Electric and Bausch, I like Bausch Health as the best break, “he added.
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– Disclosure: Cramer’s charitable trust owns Chevron, Honeywell, Eli Lilly and Bausch Health.