CNBC’s Jim Cramer on Thursday recommended the Carrier stock, telling investors that industries like climate control offer a lot of value, even if they take little attention.
Carrier is a heating, ventilation and air conditioning company that was shut down by United Technologies more than a year ago.
The stock traded up nearly 5% to $ 53.94 Thursday after posting a drop in earnings earnings in the second quarter.
“We spend a lot of time focusing on exciting companies … but you know what’s often easier to earn good money from boring companies like Carrier,” said the host of “Mad Money”.
“Heating, ventilation and air conditioning are one of the most useless businesses on earth, so it’s been a good memory that you can always make a lot of money by being boring.”
Cramer contrasted Carrier with the Robinhood marketing approval that was released earlier in the day to great fanfare, even though the shares were unable to gain traction.
Shares of Robinhood, the millennial preferred broker, fell more than 8% in its debut session. After being priced at $ 38 in the public offering, the stock closed below $ 35, giving the company a valuation of $ 29 billion.
Carrier, which was made public under radar in March 2020 at the start of the pandemic, has more than quadrupled in value since Thursday.
“The most exciting thing that’s happened to Carrier this year is that they’ve helped provide refrigeration for the vaccines, and it’s good for me. Unlike Robinhood, Carrier isn’t deliciously sexy,” Cramer said.
“I think companies like Carrier represent what you should think. They represent incredible value, especially now that it looks like Congress is about to agree on a trillion-dollar bill for infrastructure at the time we already have a GDP growth of 6%, ”he said.
“The same goes for cycles similar to bargain. You need a Nucor in your wallet, this is the best of breed steel.”
Disclosure: Cramer’s charitable trust holds shares in Nucor.