If Europe takes off, so should this stock: Cramer

(Click for video linked to a searchable transcript of this Mad Money segment)

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.

businessman stock numbers
Paul Taylor | Stone | Getty Images

After sifting through the data, Cramer said his takeaway was largely that "Eaton's weakness in the electrical business was mainly caused by the not-so-healthy economies of Europe and China," Cramer said.

Otherwise, many other metrics were good if not impressive. For example, Eaton's second-quarter net income rose to $494 million, or $1.04 per share, from $382 million, or $1.12 per share, a year earlier, when Eaton had far fewer shares outstanding.

And, Eaton was able to increase its operating profit margin to 15.6 percent, from 14.7 percent a year earlier..

Also, Cramer believes the company's recent acquisition of Cooper Industries has only begun to generate synergies. Revenue jumped 37.7 percent to $5.60 billion, driven by that acquisition.

Read More from Mad Money with Jim Cramer
4 CEO's that have recently impressed Cramer
Concerning charts suggest S&P peaked for year
Cramer's bull market in beer

All told, the Mad Money host thinks the recent decline may present opportunity.

"If you believe, like I do, that Europe is turning, and that China is getting better, then that could be fabulous news for Eaton," he said.

And Cramer isn't just talking the talk - he's walking the walk. "I own the stock for my charitable trust," Cramer said.

*Disclosure: On Wednesday August 21st Cramer owned shares of Eaton on behalf of his charitable trust.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com