Jim Cramer on Caterpillar: “It’s Integral to Data Center Construction”

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.

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