Cramer Thinks These 2 Stocks Are Worth Adding To Your Portfolio — No, They're Not Tech Or EV

Prominent market commentator Jim Cramer has talked about two stocks that he believes investors should consider adding to their portfolios.

The market expert explained that stocks in the materials sector tend to be highly cyclical, which means they could get impacted if the Federal Reserve’s interest rate hikes send the economy into a recession, according to a CNBC report.

Also Read: Best Penny Stocks

“Even the weakest of these groups have some winners that managed to buck the overall trend and it’s important to figure out if they can keep doing what they did [this year] in 2023,” Cramer said.

Following are his two picks:

1. Corteva Inc CTVA: Cramer advised investors should buy the seeds and agricultural chemical company stock on its next pullback. He believes that strong crop prices this year have left farmers flush with cash and they are more likely to invest in efficient farming. “Plus, even though the stock’s up 23% for the year, it still sells for less than 19 times next year’s earnings estimates — far from expensive,” he said.

2. Nucor Corporation NUE: Cramer terms Nucor the “best steelmaker in America.” The expert said he is certain the stock will have an up year in 2023 as it continues posting strong earnings despite the Federal Reserve’s tightening. Nucor will also be a huge beneficiary of the over $1 trillion bipartisan infrastructure bill, Cramer predicted according to the report.

“Remember, a year ago the analysts thought Nucor could only make $16 in 2022 and they ended up trouncing those estimates. I wouldn’t be surprised if they put on a repeat performance,” he said.

Read Next: Cathie Wood Stays Firm On Tesla With $4M Buy Even As Stock Slips Below Key Level — Also Loads Up On These 2 Crypto Stocks