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Cramer's 'Mad Money Follow-Up': Caterpillar

Caterpillar is a great stock to buy ahead of economic recovery, Jim Cramer says.

On Tuesday's episode of "

Mad Money

," Jim Cramer said that "some banks will actually be winners." Good banks prosper from the failure of bad banks, he said.

That's likely to be the case with



, Ohio's fourth-largest bank, which has $11.1 billion in assets. The Cleveland housing market didn't take as a hard a hit as other areas of the country, and with its competition out of the way, FirstMerit is all set for a growth spurt.

FirstMerit closed up 77 cents, or 4.2%, at $18.97 on Wednesday.

Cramer recommended



, saying that demand for its products can only rise as the economy strengthens. Wall Street generally does not like the stock, but Cramer said it was ideal to own ahead of economic recovery.

In Wednesday trading, Caterpillar up $1.03, or 3.7%, to close at $28.99.

During his "

Lightning Round

" segment, Cramer called Visa "terrific" and said he wanted to buy it "right here." Visa closed down $1.31, or 2.4%, at $54.29.

He also wanted to pull the trigger on



, which he said is having a "decent" quarter. On Wednesday, Pepsi was up 74 cents, or 1.4%, to close at $52.22.

He recommended buying

Home Depot


as it goes lower. "This is a great way to buy housing," he said. Home Depot was up 27 cents, or 1.2%, on Wednesday, closing at $23.83.

Finally, he called



a "good long-term buy." The stock closed up 63 cents, or 3.5%, at $18.79 on Wednesday.

At the time of publication, Cramer was long Caterpillar, Pepsi and Home Depot.

Jim Cramer is a director and co-founder of He contributes daily market commentary for's sites and serves as an adviser to the company's CEO. Outside contributing columnists for and, 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

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