On CNBC's "Cramer's Mad Dash" segment, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, pointed out that the downgrade came from the same analyst who upgraded Caterpillar when it was at $80 per share.
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Cramer explained that the analyst is worried about Caterpillar's mining business, as well as the possibility that its energy and transportation businesses have peaked. The company's 2015 outlook is too high, and it will not be able to achieve its guidance, according to the analyst.
"I do think mining is in trouble," Cramer explained, and suggested that investors take profits in Caterpillar.
Turning to Palo Alto Networks (PANW) , Cramer said the company "reported an amazing quarter." Palo Alto Networks is taking business from Cisco Systems (CSCO) and should continue grow revenues given the recent cyber security breaches, he added
The company has one of the best preventive softwares to protect against data breaches, Cramer concluded, adding that the stock is nearing his $100 price target.
-- Written by Bret Kenwell in Petoskey, Mich.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.