Jim Cramer’s 5 S&P 500 Stock Picks for 2023

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

Upside Potential: 13%
Gain since Cramer Prediction: 27%
Price to earnings multiple: 104

Investors who heed Cramer advice and added small positions on Stanley Black & Decker Inc. (NYSE:SWK) from the start of the year have been rewarded immensely. Shares of the tools and industrial products company have been on the move over the past two months on management announcing a new restructuring drive and cost-cutting plans.  The stock rallying 27% year to date has all but vindicated the CNBC commentator.

Stanley Black & Decker, Inc. (NYSE:SWK) plans inventory reduction that should result in run-rate savings of $2 billion by 2025. Wall Street is optimistic about the cost-cutting and restructuring plans that lead to significant earnings and cash flow growth.

Cramer believes investors should start a small position on Stanley Black & Decker, Inc. (NYSE:SWK) and gradually buy more. The company trades with a price-to-earnings multiple of 104 with a high price target of $110, implying a 13% upside potential.