Cramer's Morning Take: Dover Corp 5/28/24

Jim Cramer (0:01)

Jim Cramer here to share with you a sample of my take on the market from today's CNBC Investing Club morning meeting.

Jeff Marks (0:08)

Why don't we start talking about a new position that we're adding today, Dover, the industrial conglomerate. It serves a whole host of different end markets. Stock's been rallying the last couple quarters on the orders, inflecting. They were up 3% in Q1. Fourth quarter, we're up 2% year over year, and that fourth quarter result was the first growth after seven straight quarters of decline. A lot of areas of double digit growth here, specifically tied around the data center, whether it's these thermal connectors that deal with liquid cooling, heat exchangers as well.

Jim Cramer (0:43)

And they also have a biopharma business that looks a lot like Danaher. We know Danaher is inflecting. Now, one thing people need to know about this Divina Riscret company is that it has had many iterations, but management is determined to try to get the best. So they had an elevator business. Otis was killing them. You don't need to be in that. The service business for elevators is good.

But they seem, they're going after mega markets. And this morning when we talked about how, say, Elon Musk's built a giant data center. Well, you know what? It's gonna be Eaton, it's gonna be Dover, it's gonna be Vertiv.

And you wanna be in one of those. Now, Vertiv, I think, Vertiv is, I think, going too far.

This one has been great. As if we put up the chart of Eaton, you're gonna see a similar situation. I have been reluctant to pull the trigger in this company because I've seen the momentum go in the stock. But you know what? We have to stay with the mega, because mega trends. And I mean, these are, you could say these are offshoots of video, which obviously we have, we've had a video forever. But we buy a little here and then we literally hope it comes down.

Jeff Marks (1:48)

Right, and that's why we started very small. Started off with like a 0.6 position of the portfolio. And if it comes down, we'll buy more.

Jim Cramer (1:56)

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SPEAKER_3 (2:14)

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