Cramer: How to Trade Eaton:
This is a great company, but proceed with caution, says Jim Cramer.


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Caller Matt in Massachusetts said that water is the new oil, and asked about which company Cramer would look at. "Most of the water plays have been a disaster," he said. "I have not liked the pump group." Cramer suggested ITT Corp. (ITT), which has yet to miss earnings.

Rating on ITT (ITT) was cut from Outperform to Neutral, Credit Suisse said. New management changes offset the recent positive pre-announcement. $62 price target.

MEDICAL/DEFENSE

25%

water infrastructure

"Companies like Lockheed Martin [LMT] and United Technologies [UTX] and Textron [TXT] and ITT [ITT] are companies with a number of different divisions that are critical to some of the fastest-growing areas, whether it's helicopters for offshore oil platforms or water-treatment systems, and the growth in them will offset any slowdown here."

Defense & Water play

got to defend

Upgraded by Matrix Research from Hold to Buy