Jim Cramer on Caterpillar: “In the Old Days, CAT Usually Went Down on Earnings, That’s Over”

Caterpillar Inc. (NYSE:CAT) is one of the stocks in focus as Jim Cramer shared his weekly game plan. Cramer was bullish on the company stock as he remarked:

We talk a lot about ancillary data center plays, which means Caterpillar, which has backup generators that are needed to keep these server farms running. In the old days, CAT usually went down on earnings. That’s over. It tends to rally because people can’t believe it can consistently put up such strong numbers. They are wrong. I like the stock.

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. Cramer highlighted the company during the December 10, 2025, episode and commented:

Finally… You can buy any industrial because the hedge fund playbook says that industrials benefit from lower rates, even if you think it doesn’t matter. The fabulous irony of all this, frankly, is that Powell, in his own press conference, actually came out and said that a quarter point really doesn’t mean that much to any industry. I had to laugh at that one, but that’s not how hedge funds or even mutual funds think about it. They’ll eagerly buy Caterpillar and Cummins, two stocks at their all-time highs, just because they perfectly fit the environment.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.