Jim Cramer Says Industrials Like Caterpillar "Perfectly Fit the Environment"

Caterpillar Inc. (NYSE:CAT) is one of the stocks Jim Cramer highlighted in light of the Fed rate cut. Cramer highlighted the company while recommending buying industrials. The Mad Money host commented:

“Finally… You can buy any industrial because the hedge fund playbook says that industrials benefit from lower rates, even if you think it doesn’t matter. The fabulous irony of all this, frankly, is that Powell, in his own press conference, actually came out and said that a quarter point really doesn’t mean that much to any industry. I had to laugh at that one, but that’s not how hedge funds or even mutual funds think about it. They’ll eagerly buy Caterpillar and Cummins, two stocks at their all-time highs, just because they perfectly fit the environment.”

Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working. During the October 31 episode, Cramer highlighted the company’s role in data center construction, as he said:

“Caterpillar’s become one of the best performers in the entire market, and I think that move is justified given how so much of their equipment is used to make and maintain data centers. The company holds an analyst meeting Tuesday. I want to know if this move is multi-year in nature. I have to tell you, spoiler alert, I think it is.”

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Disclosure: None. This article is originally published at Insider Monkey.