Shares of the diesel engine manufacturer are up 2.25% on the day and are up more than 5% from its 52-week lows made earlier this week.
This is one of the "bounce stocks" investors should watch closely over the next few days, Cramer explained. If it's able to piece together a sustainable rally, that could signal a bottom is in for other industrial, manufacturing, engineering companies.
Cummins has a lot of exposure to China, so it could also indicate investors are changing their tune toward U.S.-based companies with exposure there. Cummins has a big share repurchase plan and a high quality balance sheet, too, Cramer said.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.