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Cramer: Optimists, This Stock’s for You

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If you're one of those glass half full kinds of people, you might want to consider this stock.

Timken

To get involved with this stock, as a fundamental thesis, you must believe the global economy has turned a corner.

In other words, you need to be an optimist.

You need to think the worst may be over for Europe, and that China is on the mend – that worldwide growth is again an investible theme.

If that's you -- then Cramer thinks Timken belongs on your radar.

Christopher Stevenson | Image Bank | Getty Images

An industrial goods company, Timken manufactures and manages global supply chains for two core product lines: anti-friction bearings and adjacent mechanical power transmission components. They also make specialty steel and related precision steel components.

If the global economy starts to get better, even in small increments, Cramer thinks Timken is well positioned to benefit.

That's because, "Timken has its fingers in a host of end markets, from cars to aerospace and more," Cramer explained. The ways in which economic gains could drive the bottom line are wide ranging.

However, the fortunes of the company are very much tethered to global economy. In Q1, Timken's sales fell about 23-percent, and earnings dropped 51-percent.

But those results are backward looking.

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Looking forward, the issue with this stock is whether the global economy has started to improve.

Cramer doesn't think that's a terribly far-fetched idea.

Earlier in the week, Cramer's conversations with Eaton CEO Sandy Cutler and PPG CEO Chuck Bunch suggested that headwinds generated by Europe may not grow worse than they already are.

And China's has signaled it will step up infrastructure investment, which analysts say should provide support for the economy in the second quarter.

All told, Cramer said, "ask yourself, what happens if the pessimists are wrong – what happens if Europe and China are stronger that most investors think?" Perhaps the answer is, Timken rallies.

Disclosure: As of Monday April 29th, Jim Cramer owned Timken on behalf of his charitable trust.

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