Jim Cramer's Stop Trading!: Buy Caterpillar

The selloff is 'ridiculous,' he says.
Author:
Publish date:

Buy

Caterpillar

(CAT) - Get Report

, Jim Cramer said Friday on

CNBC's

"Stop Trading!"

Cramer said the tractor giant's 14% selloff Friday is "ridiculous," given that many of the company's businesses are "on fire." Sure, Cramer said, housing has hurt Caterpillar, but at these levels it makes no sense not to buy the stock.

"This has 2 points down and 10 points up," Cramer said, laying out what he sees as the stock's risk/reward equation at $60 or so.

Cramer said he'd buy all the hard-hit stocks in the Caterpillar complex, such as

Terex

(TEX) - Get Report

, which is down 9% Friday in spite of the fact that it "has no housing" exposure, Cramer said. Cramer would also buy manufacturer

Parker Hannifin

(PH) - Get Report

, since it's now down 8% off a recent high.

Cramer would even buy

3M

(MMM) - Get Report

, given that Friday's strong quarter will have analysts raising estimates. "It reminds me of CAT right here," Cramer said, adding that 3M shares "went down too fast" when the stock plunged in the wake of two July earnings warnings.

At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.