We recently compiled a list of the Jim Cramer Is Focused on These 15 Stocks This Week. In this article, we are going to take a look at where Caterpillar Inc. (NYSE:CAT) stands against the other stocks Jim Cramer is focused on this week.
Jim Cramer, the host of Mad Money, recently addressed some of the major events for Wall Street this week, focusing on earnings reports and investor days of various companies. With post-election jitters affecting the market, he warned investors to proceed with caution, as uncertainty looms over the economic landscape.
Cramer referred to Trump’s unpredictable nature, saying, “He is mercurial. Turns out he’s capricious.” Reflecting on the mood among investors, Cramer remarked that many were asking themselves, “What were we thinking?” as they processed the aftermath of the election.
He also noted the unsettling impact of Trump’s appointments to key administration positions, saying that “heads are turning” in response to some of these picks, and suggested that investors might soon feel the air leaving the post-election optimism that had initially lifted the market.
Cramer went on to caution that while there are certainly opportunities in individual stocks, especially in the wake of Trump’s policies, many stocks are still trading at levels far above where they were just a few months ago. He explained:
“Look, I’ve told you that there are many pitfalls with individual stocks when it comes to Trump 2.0. Most of them are buying opportunities but with stocks still up so much from a few months ago, you can’t be too eager to buy the dips.”
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Despite new stocks sparking interest, Cramer emphasized that he needed more time to assess market conditions before making any significant moves. He expressed a preference for waiting, stating that he doesn’t like to buy stocks only to watch them decline immediately after, a scenario he feels is likely if he rushes in too soon.
Cramer concluded by summarizing his outlook on the market, saying:
“So let me give you the bottom line: Even though the post-Trump rally hangover has been vicious, it still hasn’t taken most of the market down to levels where I think it makes sense to buy. Now, I just gave you some nuggets. I think they could be golden, but I think it’s more important to prepare yourself for better opportunities, at least in the near future.”
Our Methodology
For this article, we compiled a list of 15 stocks that were discussed by Jim Cramer during the episode of Mad Money on November 15 and listed the stocks in the order that Cramer mentioned them.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A construction crew operating a hydraulic shovel during a nighttime project.
Caterpillar Inc. (NYSE:CAT)
Cramer commented that Caterpillar Inc. (NYSE:CAT) is a great stock to buy when the Fed’s cutting rates. He said:
“Tuesday also has got a Caterpillar analyst meeting. I think it can be bought. Caterpillar’s just pulled back from $418 to $384, where I like it very much. Great Fed rate cut stock. Maybe buy some CAT here and then buy some more if the meeting doesn’t excite people.”
Caterpillar (NYSE:CAT) is a global leader in the manufacturing and sale of heavy equipment and machinery, specializing in sectors such as construction, mining, and transportation. For the third quarter of fiscal 2024, it reported sales and revenues of $16.1 billion, reflecting a 4% decline from the $16.8 billion reported in the same period of 2023.
This decrease was largely attributed to lower sales volume, which impacted overall performance. Despite the drop in sales, the company reported an adjusted profit per share of $5.17, which met the expectations set during its previous earnings call. Although the company faced challenges in certain areas, its Energy & Transportation segment performed notably well during the quarter. This segment saw a 5% increase in sales and a substantial 21% rise in profits.
Additionally, Caterpillar’s (NYSE:CAT) backlog, which represents the value of orders yet to be fulfilled, showed a slight increase, reaching $28.7 billion. This backlog remains at a healthy level, reflecting continued demand for Caterpillar’s products and services.
Overall CAT ranks 6th on our list of stocks Jim Cramer is focused on this week. While we acknowledge the potential of CAT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CAT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.