Here are 4 of Cramer’s top stock picks for 2022, including a glowing oil giant

CNBC’s Jim Cramer on Wednesday unveiled his four top stock picks for 2022, a year he believes it will be led by companies that are profitable and manufacture “tangible” goods.

On CNBC’s Halftime Report, Mad Money host had this to say about his selection of Chevron, Eli Lilly, Honeywell and Bausch Health.

“I like Chevron because I just think oil is still undervalued after last year. The oils have a newfound discipline,” said Cramer. He also noted that Chevron announced in September that it would triple capital investments in its lower-carbon energy units. Chevron is up almost 42% in the last 12 months and by a little more than 5% in 2022.

Cramer highlighted Eli Lilly’s experimental Alzheimer’s treatment called donanemab, as well as a diabetes drug called tirzepatide, which “will be great.” Cramer said another reason he’s attracted to Eli Lilly stock is because he thinks the general sentiment toward drug companies is too negative. While Lilly is up nearly 59% over the past 12 months, the stock got off to a slow start in the first three trading days of 2022, down about 5% year-to-date.

Cramer said he likes industrial giant Honeywell, but noted that it usually lags behind its competitors when it comes to up moves. The stock is around 2.6% over the past 12 months. It’s a solid start in 2022, up 2.55% year-to-date.

On Tuesday’s Mad Money episode, Cramer said he expected Wall Street to forgive stocks like Honeywell and other industrials like Deere & Co. and Boeing this year. “At this point in the business cycle, the Playbook says you need to go for more tangible companies that do real things and make real profits,” Cramer said Tuesday.

Cramer’s not-for-profit trust added a position in Bausch Health on December 20, adding to its portfolio’s exposure to health stocks. Early Wednesday, the Trust raised its target price on Bausch Health shares from $ 29 to $ 36. Bausch Health’s shares are essentially unchanged as of the beginning of 2022. However, in the past 12 months, the stock is up more than 26%.

In the “Mid Term Report”, Cramer announced Bausch Health’s plan to split into three separate entities, including an eye health firm, a medical aesthetics division and a diversified pharmaceutical company. “I like a big breakup story,” he said. Among the planned separations at Johnson & Johnson, General Electric and Bausch, I like Bausch Health as the best breakup, “he added.

– Join Now for the CNBC Investing Club to follow Jim Cramer’s every move in the market.
– Disclosure: Cramer’s charitable foundation owns Chevron, Honeywell, Eli Lilly, and Bausch Health.

Disclaimer of liability