Cramer: There may be a recession HERE

Cramer's Mad Dash: CMI downgraded
Cramer's Mad Dash: CMI downgraded

CNBC's Jim Cramer said Tuesday that a recent downgrade in Cummins' stock could signal a recession in trucks.

"Take a look at the stock from where it's coming and where it's going," he said on "Squawk on the Street."

Fracking crews at an Anadarko Petroleum Corporation site near Brighton, northern Colorado.
Bill Nygren: Cummins, Anadarko good value stocks

Shares of the engine maker have declined about 35 percent this year and were down more than 6 percent midmorning Tuesday.

CMI stock performance in 2015

Source: FactSet

Cummins' stock was downgraded to "underperform" by Bank of America Merrill Lynch on Tuesday, citing lackluster earnings moving forward and a slowdown in the Chinese economy.

"If you own Cummins, what they're saying is this is a recession in trucks," Cramer said.

"These guys are the best there is and, if the best there is is having trouble, you can only imagine what's going on at Joy, which also got a [downgrade]."

The bank also reduced its rating on Joy Global from "neutral" to "underperform" on Tuesday.

Disclosure: Cramer's trust did not own Cummins or Joy Global shares when this article was published.