Turning back to the economy, Kneeland noted that non-residential construction has yet to pick up but residential construction has, and that's usually an 18-month leading indicator for non-residential activity.
Finally, when asked about his company's stock buyback program, Kneeland said United Rentals has the flexibility to both invest in its fleet of equipment and buy back shares. The stock is inexpensive, which makes it the perfect time to buy some back.
Cramer said nvestors aren't making money in a stock like Caterpillar (CAT). So why not own United Rentals, which is making money hand over fist from Caterpillar equipment?
Varieties of Valuation
The stock market doesn't always efficiently value a stock where it deserves to be, Cramer told viewers. Sometimes the price of a stock can diverge wildly from its underlying fundamentals. That's certainly been the case with Best Buy (BBY - Get Report), which is up 260% for the year, and Pioneer Natural Resources (PXD - Get Report), which has more than doubled.When it comes to these two stocks, Cramer said the markets have simply gotten it wrong. Best Buy entered the year at a scant $11 a share on fears that the company, widely seen as just a showroom for Amazon.com (AMZN), was going the way of rival Circuit City. But Best Buy proved that Amazon can't kill everyone and if you invest in your best-performing stores, close your underperforming ones and take advantage of new product cycles, you can actually make money. Cramer said he still prefers GameStop (GME), but commended Best Buy for a turnaround done right. Then there's Pioneer, a company with 50 billion barrels of proven reserves in an oil field that was thought to be almost dry. Turns out with new technology, the Permian Basin is actually the second-largest oil field in the world, ahead of the Middle East, ahead of Russia and only trailing a single field in Saudi Arabia. Cramer said this stock could hit $300 a share before getting close to being overvalued.