Nathan also noted that shares of GM tend to be closely correlated to the yield on the 10-year U.S. Treasury bond. Rates below 3% have been bad for the stock but with yields over 3%, things will likely be very positive.
Cramer agreed with Nathan's analysis, saying sales are picking up for GM. Now that the U.S. government has sold its stake, there's a lot more gain to be had for the company. If shares are able to extend above $39 a share, then the stock could easier rise to its highs near $42.
Keep on Trucking
The bull market in heavy-duty trucks continues to motor on, Cramer told viewers. Thanks to new fuel efficiency standards from the Obama administration, these stocks should keep on trucking for years to come.
With the average age of a heavy-duty truck in America pushing 6.7 years, Cramer said there was already a big replacement cycle just getting started. Now, with increased fuel standards, that cycle will only get bigger. So which stock to own? Cramer said among the group he prefers Paccar, which derives 48% of its sales from the U.S. market and nearly 80% from the heavy-duty segment in particular.
Cramer noted that Navistar has seen more than its fair share of struggles recently, with the EPA declaring Navistar's latest engines wouldn't meet the new standards. That news caused the company to lose 13% of its market share. Cramer said with so many missteps, he'd avoid Navistar for the foreseeable future.
But Navistar's pain is Paccar's gain as the company has picked up much of Navistar's market share. Cramer said he wouldn't chase shares higher but as the market pulls back he'd definitely be a buyer.