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Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Tuesday July 5.

Honeywell (NYSE:HON), Cummins (NYSE:CMI)

Cramer urged viewers to look beyond the woes of the domestic economy and to be skeptical of the idea that America doesn't manufacture anything anymore. Investors should grab great American industrial stocks that will rise on increasing demand overseas.

He discussed Honeywell (HON), a diversified industrial giant which produces auto parts, heating and cooling systems, equipment for aerospace and energy saving devices. Since CEO Dave Cody took over in 2002, the company has changed its culture, cut costs and has focused on profit. Honeywell laid out an ambitious 5-year plan last year and has recently reiterated its targets. Revenue is tracking ahead of its projections of 7-9% growth by 2014, and the company aims to bring its gross margins up from 60 to 75 points. Honeywell plans to reduce cycle times for new product development by 30% and cut its development costs by 50%. Sales in emerging markets are expected to grow from 23-30% by 2014, and the company will aim to more than double new product sales from $4.1 billion to $9 billion.

While many think of Honeywell as a cyclical company, it is levered to strong secular growth trends, such as energy conservation. Its automation and control sector generates 40% of sales. Honeywell will benefit from the aerospace cycle which Cramer predicts will last 7 years.

Cummins Engine (CMI) is a huge player in the truck bull market, and the company reported supply constraints are causing higher demand. In such an environment, Cummins can successfully raise prices. The North American replacement cycle for trucks is in its early phase, and with new fuel emissions standards, Cummins will generate more sales. The company reported a 70% increase in revenues from North America and a 30% rise overseas. While there has been concern about input costs, these are peaking and are expected to decline soon.

Dupont (NYSE:DD), PPG Industries (NYSE:PPG)

Cramer discussed two chemical stocks that are worth buying on a decline; Dupont (DD), PPG Industries (PPG). Dupont is a 200 year old company with a stock that yields 3%. The company produces industrial chemicals, genetically modified seeds, coatings and other products. Cramer called Dupont "The world's most dynamic science company."

Dupont has a 5-year plan to grow earnings per share by 12% annually, and to increase emerging market sales to 36% from 32%. The company will continue to benefit from the agriculture boom, as its weed killers and genetically modified seeds will increase yields. Cramer thinks Dupont is a bit expensive at its current level and would buy it when the yield goes above 3%.

PPG Industries (PPG) is no longer about plate glass and fiberglass. Its specialty now is coatings, which generate 74% of its sales. Business in Asia has grown 5 times over the last 10 years. A full 58% of its sales are from overseas. The company is levered to the bull markets in autos and aerospace, and the company has raised its dividend for 40 consecutive years.

Ford (NYSE:F)

Ford (F) is the greatest comeback story in history, said Cramer, and while the company seemed like roadkill a few years ago, it is taking share and taking names. The stock has increased 450% since Cramer got behind it in 2009 and it still has more room to run. The company also unveiled a 5-year plan, although lately it has been kept down by high fuel prices, production constraints because of the disaster in Japan and seasonality issues. However, the company has proven that it can pick itself up and run, since it didn't go bankrupt, even during the financial crisis, and did not require bailouts.

"Nobody masterminds a turnaround like CEO Alan Mulally," said Cramer. The CEO plans to increase worldwide sales by 50% by 2014, with a third of those sales coming from emerging market countries. The company has cleaned up its balance sheet and is concentrating on developing more fuel efficient smaller vehicles which it expects to make up 55% of sales by 2020, and is striving to triple its number of electric cars in the same timeframe. While car sales domestically will improve as the unemployment rate drops, in the meantime, Cramer sees higher earnings for Ford and a rising stock price.


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