Caterpillar Inc. (NYSE:CAT) was one of the stocks on which Jim Cramer shared his take, explaining that dot-com analogies do not hold up in this market. A caller asked for Cramer’s thoughts on 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.
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 discussed the stock during the April 30 episode, as he commented:
I remember the days when our economy ran only on the consumer… However, with the arrival of data centers, no surprise to see that Caterpillars on the list of hottest stocks, up 10% today… It’s got a ton of business from the data center build-out. In a new twist, though, investors, actual investors, are putting together groups, buying and then going and buying, okay, get this, buying hundreds if not thousands, of engines, CAT engines.
They’re stringing them up… And they are taking the natural gas from the hills in West Virginia, pumping it through these actual Caterpillar engines and building their own power plants basically off the grid. And this is just driving a huge amount of business for CAT. I was always worried these guys might have too much inventory. After I heard that story, I worry they don’t have enough. And again, if the power grid has to get much bigger, that means a lot of construction for the utilities. Who do you think they’re going to call? That’s right, Caterpillar, and a huge number of workers. Again, strong for the economy.
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