Cramer sees upside for Pitney Bowes, Eaton stocks

Cramer's Stop Trading: Pitney Bowes & Eaton
Cramer's Stop Trading: Pitney Bowes & Eaton

Investors seeking to add to their portfolio should consider two stocks, namely Pitney Bowes and Eaton, CNBC's Jim Cramer said Wednesday.

Pitney Bowes had a "great quarter," even though its business is often misunderstood, Cramer said on "Squawk on the Street."

"Everyone thinks it's just a mail postage company. It's actually software," Cramer said, noting its software services are used to ship goods purchased through Internet retailer eBay, for example. "I like the stock very much."

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Meantime, Cramer said he's "making a stand" on Eaton's stock.

The U.S. manufacturer of power products and systems tempered its full-year profit forecast on Tuesday due to weaker margins in its electrical systems business and dented some Wall Street hopes for a near-term spin-off of its vehicle business.

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Goldman Sachs, Deutsche Bank and JPMorgan Chase all downgraded the stock on the news.

"This is just a case where people said, '[CEO Sandy] Cutler doesn't know what he's doing. He's done a bad job,' and they've all turned on him at once," Cramer said. "When you turn on someone all at once, they tend to make a comeback."

"When everyone downgrades a stock, what have we learned? ... It's closer to a bottom than a top."

—By CNBC's Drew Sandholm, with Reuters.

DISCLOSURE: When this story was published, Cramer's charitable trust owned Eaton. It did not, however, own Pitney Bowes.