Six months ago Jim Cramer told investors that the railroad stocks were about to go off the rails. Since then, the group has been slammed so hard that Cramer now suspects the torture could finally be coming to an end.
"Some of the railroad stocks are starting to look attractive here, although there is no rush to buy them, and ideally, you should wait for the next marketwide sell-off before you pull the trigger," the "Mad Money" host said.
Railroad companies have been struggling with both secular and cyclical declines in many of their largest cargo loads, such as coal and oil. During the shale boom, oil producers were willing to ship vast amounts of crude by train because there was not enough pipeline capacity.
Needless to say, with the price of oil reaching $30 at the same time that many new pipelines have been built, railroad businesses have been crushed to the point where yields are beginning to look attractive again.
"The more aggressive of you can start at a little more than 3 percent yield … I will bless it as long as you don't buy in one fell swoop and you get a green light from the Fed in the form of a benign statement tomorrow," Cramer said.