Jim Cramer's Mad Dash: Sell Caterpillar Before Selling United Rentals

NEW YORK (TheStreet) -- Construction is very important to the economy, Jim Cramer, co-manager of the Action Alerts PLUS portfolio said, because the industry employs so many people. 

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But on CNBC's "Mad Dash" segment, Cramer reasoned that investors shouldn't use Terex's (TEX) underwhelming earnings report as a read-through on the overall economy. 

First, Terex has a lot of overseas exposure, particularly in Europe. It's also not as good as a company like United Rentals (URI) , which is "a business that has just been fantastic," he added. 

If investors feel as if they need to sell a stock based on Terex's results, sell Caterpillar (CAT) , he explained. The company has too much exposure to mining, which is currently one of the weakest industries in the world.

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-- Written by Bret Kenwell in Petoskey, Mich.

Follow @BretKenwell

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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