Jim Cramer Looked At 5 Stocks, Including Caterpillar, Vertiv, and Home Depot

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1. Caterpillar Inc. (NYSE:CAT)

Caterpillar Inc. (NYSE:CAT) was among the stocks Jim Cramer looked at as he explained the need for a tame bond market for the stock market to go higher. Cramer started the week’s game plan with the stock, as he said:

So let’s go to our game plan for next week…. Monday’s Caterpillar, this division, okay, it’s integral to data center construction, and it’s hosting a headquarters visit for investors right now. CAT trades at 36 times earnings. It’s like a tech stock. Oh, you know, I like CAT, but this has become overheated. If this division, well, this division has everybody excited. Perhaps it merits the premium. We have to find out.

Caterpillar Inc. (NYSE:CAT) provides heavy machinery, engines, turbines, and rail equipment. In addition, the company offers power systems, parts, and support that keep the equipment working. During the May 11 episode, a caller asked Cramer about the stock’s potential to go higher. In response, he said:

Caterpillar’s, you know, people forget, Caterpillar is oil and gas, and we’ve been pumping a lot more oil and gas. Caterpillar’s construction and infrastructure; we’ve been doing a lot of infrastructure. And Caterpillar’s got engines that line up and make you get to be able to have the electricity that you need to be able to hit the gigawatt numbers that all these hyperscalers want. That means that Caterpillar is a buy. Good stock to end on.

While we acknowledge the potential of CAT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CAT and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 40 Most Popular Stocks Among Hedge Funds Heading Into 2026 and 15 Stocks That Will Make You Rich in 10 Years. 

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