If you agree with Cramer that Europe is getting better, the share price of this company's stock should get better too.
That company is Eaton Corp, a diversified industrial conglomerate which makes products ranging from flight controls and circuit breakers to devices that provide back-up power for personal computers and workstations.
With Eaton involved in so many different areas of business, from aerospace and automotive to hydraulics and more, it would stand to reason that the diversification should insulate the company from weakness.
"Here's the thing, though, despite being a fabulously run company, back at the beginning of August, headlines from Eaton's quarter were considered not so hot," Cramer said.
On August 2nd Eaton reported a lower-than-expected quarterly profit and the company cut the top end of its full-year earnings outlook, citing slower market growth.
However, earnings headlines don't always paint the whole picture.