Jim Cramer's Stop Trading! Cat's a Winner

Caterpillar (CAT) is being misunderstood by analysts who've gone negative on the heavy-equipment maker, Jim Cramer said Thursday on CNBC's "Stop Trading!" segment.

He made his comments in reaction to a decision by Stifel Nicolaus to downgrade the stock to a hold rating from a buy.

Cramer said he would still own the shares, because machinery names such as Cat are the current growth stocks. He said some Cat watchers have made the mistake of believing that the weakness in the housing market will hurt the company, when in fact it will benefit by the expanding economies of Brazil, Russia, China and other developing markets.

As for Crocs (CROX), the seller of shoes with holes punched in them, Cramer said he keeps getting questions about when the stock should be sold. Now isn't the time, he said.

Investors should only start unwinding their positions after a few more analysts come out with coverage recommending the stock. When they're all on board, Crox will be ready to go down, he said."It's a sponsorship issue," he added.

Cramer also had positive remarks on fast-food chain operator Yum! Brands (YUM). The company, he said, is a good one, and people who bought the stock amid the pullbacks -- such as the downturn earlier this year that followed televised footage of rats cavorting in a New York Taco Bell -- have been rewarded.

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