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Morning Bell With Jim Cramer: Buy Eli Lilly

Jim Cramer shares stock market news discussed buying Eli Lilly and Estee Lauder stocks, and Caterpillar’s role as a recovery stock.

Dow stocks extend slump as coronavirus infection rates hit record highs in Europe and the United States and concerns for a pause in Johnson & Johnson's coronavirus vaccine trial. Johnson & Johnson  (JNJ) - Get Johnson & Johnson Report becomes the second "Operation Warp Speed' trial to pause following the unexplained illness of one of its participants.

In the last episode of Mad Money, Jim Cramer said that Leadership matters, and having the right leader at a company can make all the difference. A case in point is Advanced Micro Devices  (AMD) - Get Advanced Micro Devices Inc. Report, under the leadership of Lisa Su.

TheStreet's Katherine Ross and Cramer discussed buying Eli Lilly and Estee Lauder stocks, and Caterpillar’s role as a recovery stock.

Eli Lilly Stock: Buy or Sell?

Eli Lilly & Co.  (LLY) - Get Eli Lilly and Company Report posted weaker-than-expected third-quarter earnings Tuesday and lowered a portion of its full-year profit guidance, as sales of its blockbuster diabetes treatment, Trulicity slowed and costs linked to its coronavirus treatment reached jumped.

Eli Lilly said adjusted earnings for the three months ending in September were pegged at $1.54 per share, up 4% from the same period last year but well shy of the Street consensus forecast of $1.71 per share. Group revenues, the company said, rose 4.7% to $5.741 billion, a figure that also missed analysts' estimates of a $5.88 billion tally.

Cramer said that Eli Lilly is a buy and thinks that it is oversold as the company is doing so many things right.

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Estee Lauder Stock: Buy or Sell?

In August, Estee Lauder  (EL) - Get Estee Lauder Companies Inc. (The) Report posted a wider-than-expected fourth-quarter loss and said it planned to cut as many as 2,000, or 3%, of its jobs as the cosmetics giant struggles to emerge from the coronavirus pandemic shutdown.

Cramer said that investors “should swallow their pride and come in” when it comes to choosing the right time to buy Estee Lauder. He thinks that Estee Lauder is doing a good job of helping people look good on their Zoom calls and treating the skin reactions caused by constantly wearing masks.

Caterpillar Stock: Buy or Sell?

On Tuesday, Caterpillar  (CAT) - Get Caterpillar Inc. Report posted stronger-than-expected third-quarter earnings even as demand for its industrial equipment slumped notably lower from last year amid the global coronavirus pandemic.

Cramer thinks that Caterpillar moved up greatly and became a recovery stock, but it didn’t give investors any comfort in a potential global industrial recovery.

None of these stocks are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.