Cummins Surges to Five-Month High Amid Oil, Commodities Rallyby
CNBC's Jim Cramer cites stock as beneficiary of oil's gains
Bloomberg Commodity Index heads for fourth straight increase
Cummins Inc. climbed to its highest in more than five months after CNBC’s Jim Cramer cited the maker of heavy-duty engines as a potential gainer from a rally in oil and commodities.
The shares rose 4.7 percent to $112.85 at 1:01 p.m. in New York after reaching $113.66, their highest intraday price since Oct. 23. The price of West Texas Intermediate crude oil for May delivery rallied in the past three trading sessions, closing up 4.5 percent Tuesday, when Cramer made his comment after the stock close in New York.
“So when oil goes up like it did today, a whole host of companies go up with it,” Cramer said on “Mad Money,” naming Cummins along with other industrial-related companies such as Honeywell International Inc. and Caterpillar Inc. Citing recent weakness in the truck market, which Cummins supplies engines for, he said the company remains strong because of its ties to an improving commodities outlook.
Shares of the Columbus, Indiana-based company gained 22 percent this year through Tuesday’s close. The price on WTI crude oil for May delivery rallied 5.5 percent .