CNBC’s Jim Cramer seemingly always has advice, and one his latest stock tips crosses over into the HVAC industry. The sound effects-loving TV personality recently professed that to survive an often volatile market, investors need to have unwavering conviction. And in citing energy concerns across the globe, the Mad Money host is a strong believer that HVAC manufacturers offer smart opportunities these days for investors.
A recent column written by a Web producer for the show reports one of Cramer’s keys to picking sound stocks is to focus on long-term ideas to minimize risk. If the premise behind one’s confidence in an industry is strong, it’s easier — and more lucrative — to hold on when the market inevitably goes into roller coaster mode.
That sounds like common sense on the surface, but what’s behind the energetic finance personality’s assertion that the HVAC sector has such a bright future? While many have accused Cramer of being full of hot air over the years, his reasons why one should look into investing in companies that help keep buildings at room temperature — if true — could paint a bright picture for growth opportunities in the field. Cramer points to the need for electricity in developing nations, as well as businesses hoping to cut energy costs with the help of leading HVAC providers.
“As regulators around the world continue to push for minimum energy efficiency standards and companies seeks to reduce their electric bills, they are installing more efficient HVAC systems, as made by Ingersoll-Rand, Johnson Controls and Watsco.”
Other companies Cramer recommended targeting include:
- Honeywell, which focuses on energy efficiency and smart-grid demand response technologies.
- Emerson Electric, due to their superior HVAC systems and power management for data centers, which can be a huge power drain for companies.
- Eaton, a company also specializing in power management for data centers, along with building hybrid engines for trucks and aerospace hydraulic systems.
Investment advice can backfire — as Cramer knows all too well — but his long-term optimism is just the latest round of recent positive buzz for the HVAC industry, with jobs prospects in the field on the upswing and the industry benefiting from smart-grid innovation through the use of hybrid HVAC systems.