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Jim Kramer says he likes Corteva and Nucor for 2023

CNBC’s Jim Cramer on Monday offered investors two stocks they should consider adding to their portfolios.

Stocks in the materials sector tend to be highly cyclical, he said, meaning they could collapse if higher interest rates from the Federal Reserve send the economy into recession.

And while it’s far from the best sector in the S&P 500, “even in the weakest of these groups, there are a few winners who have managed to turn the tide, and it’s important to find out if they can continue to do what they’ve been doing. [this year] in 2023,” Kramer said.

Here are his thoughts on the two stocks he chose:

Korteva

Cramer recommended that investors buy seeds and agricultural chemical stocks on the next pullback. He believes that high crop prices this year have left farmers with cash and more likely to invest in efficient farming.

“Also, even though the stock is up 23% for the year, it’s still selling for less than 19 times its earnings estimates next year – far from expensive,” he said.

Nukor

Calling Nucor “America’s best steelmaker,” he said he was confident its stock would rise in 2023 after the company showed its ability to continue posting solid earnings despite the tightening of the Federal Reserve. The company will also be a major beneficiary of more than $1 trillion in a bipartisan infrastructure bill, Cramer predicts. Nucor shares are up more than 15% since the start of the year.

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

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