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. 

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.


-- 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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