Jim Cramer Discusses These 13 Stocks & Says Calm Down Everyone

5. Cummins Inc. (NYSE:CMI)

Number of Hedge Fund Holders In Q4 2024: 53

Cummins Inc. (NYSE:CMI) is an industrial machinery manufacturer geared towards the needs of the transportation industry. As a result, the shares depend quite a bit on the state of the economy as robust output means greater demand for the firm’s products. Cummins Inc. (NYSE:CMI)’s shares are up by 16% over the past year but have lost 9% year-to-date. Some of the stock’s recent losses are attributed to the EPA’s announcement of evaluating the Biden administration’s rules. Investors are fearful that this might not lead to advance demand for Cummins Inc. (NYSE:CMI)’s products ahead of the rules being enforced. Here is what Cramer said:

“[On stock moving after EPA’s latest comments] Well, they’ve always, anytime there has been like a tightening of the rules, they always, these companies have done well in pre buy. It’s like wow, I can go buy all the engines now before the tariffs so to speak of the EPA. And they lost that wind behind their back.”

“[On whether the share performance is a function of transport stocks] Well, the transport’s, are not good. Uh, look, you don’t know what the traffic’s going to be coming from Mexico or Canada. You don’t know who to, what the tariffs, is the tariff going to be at the border? Is the tariff going to be on what is the final sale? Well let’s just pull back.”