One stock that is going down, though, is Caterpillar, after Stifel Nicolaus downgraded the stock to “hold” from “buy.” Cramer, whose charitable trust owns CAT, says analysts covering the stock are missing a couple of key points. “Machinery stocks are this era’s growth stocks,” he said, “like pharmaceuticals used to be, like tech used to be.” According to Cramer, the growth is coming from overseas business and analysts are still pinning the company’s success to housing, which is not the case anymore.
Cramer also had a suggestion for owners of Crocs who are looking for the right time to sell. He said to wait until the last firm rolls out coverage of the stock. That could be as soon as within the next few weeks, Cramer thinks, with just a couple of firms left. “It’s a sponsorship issue,” he said. “Once it’s sponsored by everybody, then you gotta vamoose.” Until then, it’s probably best to hold on, even if the valuation seems aggressive.
Lastly, investors who bailed on Yum! Brands after the recent Taco Bell scare made a big mistake, as far as Cramer's concerned. The stock has climbed back steadily since the incident. “You missed 11 points if you cared about rodent feces,” Cramer said.
Jim’s charitable trust owns Caterpillar.
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