We recently published a list of Jim Cramer Talked About These 8 Stocks. In this article, we are going to take a look at where Caterpillar Inc. (NYSE:CAT) stands against other stocks that Jim Cramer discusses.
On Friday, Jim Cramer, the host of Mad Money, expressed concern over President Donald Trump’s focus on the long-term benefits of tariffs as he argued that the short-term consequences are far more severe.
“The president is fixated on the long term when he talks about trillions of dollars that the tariffs will bring in. He says the tariffs will allow us to fund both tax cuts and a lower budget deficit. Putting aside whether that’s going to be true or not, I don’t think we have the full luxury right now of focusing on the potential long-term benefits because the short-term is a horror show.”
READ ALSO: Jim Cramer’s Game Plan: 10 Stocks in Focus and 10 Stocks on Jim Cramer’s Radar Recently.
Cramer highlighted that the tariffs are excessive and poorly executed and also lack the reciprocal nature needed for a fair trade policy. He noted that it has triggered unnecessary chaos in the markets. He further criticized the stock market’s current state and noted that it is far from functioning properly. He pointed to the struggles of private equity firms, whose stock values are plummeting.
Cramer mentioned that these companies, which hold a significant number of highly levered businesses, had been planning to bring them public under Trump’s administration. However, he said that due to the current market turmoil, there are growing concerns that these initial public offerings might be canceled altogether. He added:
“If we want to get out of this mess, we need some signs that the president understands the need for a functioning market.”
Cramer also stressed that while the U.S. may be experiencing low unemployment, it might not last if short-term issues are not addressed. He commented that the public does not elect their leaders to look only toward long-term outcomes but also to manage immediate challenges. Cramer urged Trump to adjust his approach and form better trade relationships with countries that are open to trade negotiations.
“The President needs to make a commitment… to help companies that want to avoid the tariffs. He needs to call world leaders and say that they can roll back some of the tariffs that he’s putting on them, but, they gotta play ball. Mr. President, don’t cause a crash. It will be your legacy and it can easily be avoided.”
Our Methodology
For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on April 4. We listed the stocks in ascending order of their hedge fund sentiment as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A construction crew operating a hydraulic shovel during a nighttime project.
Caterpillar Inc. (NYSE:CAT)
Number of Hedge Fund Holders: 62
A caller asked if it was a good time to start a position in Caterpillar Inc. (NYSE:CAT). Here’s what Cramer had to say:
“Okay, this is a great question because CAT has given up almost, it’s given up everything and Jim Umpleby is a terrific guy. Here’s what you have to do. You have to wait till he reports. You can’t jump the gun on this… Well, you won’t know exactly whether he’s buying back stock or he’s pulling in his horns until he reports. He’s too straight a guy not to listen to. We can’t pull the trigger until he says something.”
Caterpillar (NYSE:CAT) designs and manufactures construction and mining equipment, industrial engines, and diesel-electric locomotives. The company also provides financial products, parts distribution, logistics services, and various technology solutions. In January, Cramer commented:
“I think the stock’s had an amazing run, but CAT’s no longer a cyclical, it’s a secular grower because CEO, Jim Umpleby has maneuvered its business into more consistent end markets.”
Overall, CAT ranks 3rd on our list of stocks that Jim Cramer discusses. 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 time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
