Jim Cramer’s Game Plan: Top 14 Stocks to Watch

10. Caterpillar Inc. (NYSE:CAT)

Number of Hedge Fund Holders: 50

Ahead of Caterpillar Inc.’s (NYSE:CAT) announcement of its fourth-quarter and full-year 2024 financial results on January 30, Cramer said:

“Thursday morning starts with Caterpillar, which is a conference call stock, meaning you can’t make a decision until you hear the call because that’s where you learn about the future. 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.”

Caterpillar (NYSE:CAT) is a leading global manufacturer and seller of heavy machinery and equipment, focusing on industries like construction, mining, and transportation. Previously, Cramer has called CAT a “Great Fed rate cut stock”. On January 13, analysts at financial services firm Evercore ISI upgraded the company stock from an Underperform rating to In Line following a survey of dealers in the construction equipment and heavy machinery sectors.

David Raso, managing director and analyst at Evercore ISI, noted in a January 12 report that “Caterpillar (NYSE:CAT) is somewhat relying on price to move equipment, but it’s generally working.” He added that Caterpillar dealers’ six-month sales and purchasing forecasts are above the industry survey’s average. Additionally, Evercore ISI found that while new inventory remains above the industry average, it is gradually declining. However, used inventory has increased, which they attribute to weaker pricing for both new and used equipment compared to the industry survey’s average.