Cramer's Top Picks: Palantir, Salesforce, Caterpillar, and Why Rates Are the Real Risk
As seen on the 24/7 Wall St. homepage on October 1, 2026.
Mad Money w/ Jim Cramer 10/1/26
- Cramer still buys Palantir at $190 after the stock gained 60% in Q3 and stalled short of his $250 target
- Salesforce, up 46.5%, called the better SaaS-apocalypse rebound than Veeva at 30 times earnings
- Caterpillar's 24% Q3 profit taking framed as a buying chance on data center engine demand
- IBM, down 22% on its miss, gets the wait-a-quarter rule; Home Depot stays hostage to rates
Cramer wants to add software as the bounce-back trade and the beaten-down industrial names tied to data center power. He also warns that rising rates are the real threat heading into earnings season in a couple of weeks.
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Palantir gained 60% in the third quarter and still sits below Cramer's $250 price target, and he is willing to buy at $190. Adding after that run signals his conviction on the software bounce-back trade heading into earnings season.
Salesforce, up 46.5% in the same period, is Cramer's preferred SaaS rebound name over Veeva, which he considers expensive. If software is coming back, he wants the bigger price recovery and the more defensible valuation.
Caterpillar's 24% pullback in Q3 is being framed as a buying opportunity tied specifically to data center engine demand. IBM's recent miss earns the wait-a-quarter rule, leaving Cramer on the sidelines for now.
Home Depot's thesis depends on rates: rising interest rates are keeping a lid on housing activity, and until that changes Cramer sees the stock as stuck. He flags rates as the broader threat hanging over the market as earnings season approaches.
Mentioned: HD, PLTR, CRM, IBM, MCD, MRK, MS, CAT, MU, APP, CRWD, MDT, MSTR, CEG, WDAY