Cramer says Union Pacific has the best Mexican import business in the world that benefits greatly from the North American Free Trade Agreement (NAFTA). He adds grain, fracking sand, and the automotive and lumber/housing sectors are doing quite well.
Cramer notes these are all good signs and points out Union Pacific stock remains inexpensive because the company must re-price multiple contracts next year. He recommends buying Union Pacific until the low $200 range.
WATCH: More market update videos on TheStreet TV | More videos from Jim Cramer
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV