Jim Cramer’s Top 5 Stock Picks for 2023

In this article, we will take a look at Jim Cramer’s top 5 stock picks for 2023 To see more such companies, go directly to Jim Cramer’s Top 10 Stock Picks for 2023.

5. Stanley Black & Decker, Inc. (NYSE:SWK)

YTD Stock Performance Through November 22: +17%

Stanley Black & Decker, Inc. (NYSE:SWK) ranks 5th in our list of Jim Cramer’s top 10 stock picks for 2023. When the year started Cramer recommended investors to initiate small stakes in Stanley Black & Decker, Inc. (NYSE:SWK) and slowly add to their positions. Earlier this month Cramer reiterated his bullish stance on the company and said his investing club members should consider the stock. Cramer has been bullish on Stanley Black & Decker, Inc. (NYSE:SWK) for a long time. In March 2022 Cramer had said during a program that Stanley Black & Decker, Inc. (NYSE:SWK) is cheap.

So far Cramer’s call about Stanley Black & Decker, Inc. (NYSE:SWK) has proven to be correct. Stanley Black & Decker, Inc. (NYSE:SWK) has gained about 17% so far this year through November 22.

As of the end of the third quarter of 2023, 19 hedge funds tracked by Insider Monkey had stakes in Stanley Black & Decker, Inc. (NYSE:SWK).

Appleseed Fund made the following comment about Stanley Black & Decker, Inc. (NYSE:SWK) in its Q1 2023 investor letter:

“During the most recent quarter, Appleseed Fund added three new equity holdings: Medtronic (MDT), Stanley Black & Decker, Inc. (NYSE:SWK), and Synovus Financial (SNV). Stanley Black & Decker is the world’s largest tool manufacturer. It produces power tools, hand tools, storage, digital tool solutions, lifestyle products, outdoor products, engineered fasteners, and other industrial equipment. 2022 was quite a forgettable year for the Company with its stock price falling by roughly 60%. Due to supply chain issues, bloated inventories, inflationary pressures, and weaker demand, the Company badly missed its original 2022 guidance. With recessionary fears, waning earnings momentum, a more elevated leverage profile, and reliance on the U.S. construction market, it is of no surprise how poorly the stock price behaved last year. In our view, the sell-off has been excessive with the stock price trading near March 2020 pandemic lows and at levels otherwise not seen since early 2014. We view the stock at washed-out levels with a favorable profile going forward.”