Jim Cramer -- Cummins Could Be Ready to Rally

Shares of Cummins (CMI) are up 3.5% Monday, likely getting a boost from the analysts at Evercore ISI who upgraded the stock to buy and set a $133 price target. 

Last week, Cummins reported not-so-great earnings, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment. 

However, despite the disappointing results the stock has been trading pretty well since last Tuesday. That's a good sign, Cramer said. 

When stocks trade higher on perceived bad news, it shows the share price can really climb when there is good news, he explained. For instance, if there is even a moderate pickup in the U.S. economy, Cummins could be a major beneficiary. 

In this case, it shows that when the presidential election is over, Cummins will be a stock investors should check out as a possible buy, he concluded. 

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

More from Opinion

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?