Jim Cramer on Why Investors Are Sticking by Caterpillar

TheStreet’s Action Alerts PLUS Portfolio said investors are willing to look past Caterpillar’s (CAT) lackluster first quarter guidance. ‘Caterpillar misses big and people don’t sell,’ Cramer said. ‘People are willing to forgive Caterpillar’s first quarter because it stuck by its entire 2016 numbers.’ Caterpillar expects first quarter earnings between $0.65 and $0.70 a share, falling short of the $0.97 a share analysts had expected. Plus, revenue of between $9.3 billion and $9.4 billion, missed Wall Street’s expectation of $10.4 billion. The headwinds were sparked by lower oil prices and slower growth from China, the world’s second largest economy. Shares of Caterpillar added 11 percent since the start of the year.