On Tuesday's episode of "Mad Money," host Jim Cramer put together a list of investible companies in the energy complex that benefit from the inflationary pressures hitting the U.S. economy. Subscribe to CNBC PRO for access to investor and analyst insights: https://cnb.cx/2Vtntx6
CNBC’s Jim Cramer on Tuesday compiled a list of companies that benefit from inflation, suggesting investors look there for performance while price pressures weigh on other parts of the market.
“Don’t fall into the trap of thinking that the whole market will get wrecked by persistent inflation, except for the oils,” the “Mad Money” host said.
“We are now discovering there are vast swathes of the market that benefit from inflation,” which also includes the banks and currently parts of technology and large pharmaceuticals, Cramer said. “That’s a huge chunk of this market, unlike any combination I’ve ever seen. Plenty of winners out there if you just stop freaking out and start looking at the opportunities.”
Here are the winners Cramer identified in each of the aforementioned sectors.
Chevron is Cramer’s favorite of what he called the “big, boring internationals.”
“They’re basically along for the ride, doing what they always do, but making more money doing it” because the price of oil is above $80 per barrel, Cramer said. “I’ve liked Chevron the most, yields nearly 5% [and it has] committed to spending $10 billion on new technologies that are less energy-intensive.”
Domestic producers Devon Energy and Pioneer Natural Resources are exercising more discipline on drilling, Cramer said, and both companies instituted variable dividends that are very attractive.
In the natural gas industry, Cramer pointed to Coterra Energy, Cheniere Energy and the “far more speculative” Tellurian as three names to consider.
As for master limited partnership pipeline players, Cramer highlighted Enterprise Products Partners and Williams Companies for their dividend yields.
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