Bill Mcdermott on Eaton: Jim Cramer Says Be Careful After Big Run

bill mcdermott, Jim Cramer said Eaton had had a big run and that he had to be careful. The caution came as the stock was being discussed ahead of earnings, after a stretch that had already moved it sharply. For holders, the message was simple: a name tied to data centers can stay in focus, but the setup is no longer cheap.

Cramer’s Eaton caution

Cramer said, “Tuesday’s jammed. We’ve got the dilemma of the data centers identified by Eaton, which provides electric hookups and air conditioners to keep things cool. We own it for the Charitable Trust. It’s had a big run. The ones that have had big runs, they tend to sell off. I gotta be careful.”

That quote does two jobs at once. It ties Eaton to the data-center trade, and it shows why the stock’s recent advance changed the tone around it. He was not arguing against the company; he was flagging that a stock with a strong move can become harder to chase before earnings.

March 12 and Eaton

March 12 brought the other side of that view. When a caller asked about Eaton on the Mad Money episode, Cramer said, “Well, you know, it’s funny if it were, you know, this is a silly asterisk if it were not for the war, but I think because of the war, it’s going to make everyone feel a little bit dicier about owning stocks. So you have people selling it. But I do think the answer is yes, I do want to own Eaton.”

That answer matters because it shows the split in his stance: he still wanted the stock, but he also said the war was making people more cautious about owning stocks generally. Eaton was in that crosscurrent, with support from its data-center link and pressure from the broader mood he described.

What Eaton sells

Eaton Corporation plc is a power management company that provides electrical, aerospace, and vehicle components. Cramer said its products include power distribution equipment, circuit protection devices, and specialized systems for aircraft refueling, engine valves, and electronic controls.

He also said Eaton provides electric hookups and air conditioners to keep data centers cool. That is the part of the business that kept Eaton on his radar, even as he warned that the stock had already had a big run.

Charitable Trust and earnings

May 2014 marked the start of returns since Eaton’s inception, and Cramer said the stock was owned for the Charitable Trust. That makes the call more than a casual TV comment; it is a live portfolio view he was willing to discuss before earnings.

For readers following the name, the practical takeaway is tight and narrow: Eaton remains on Cramer’s list, but he has already signaled that a strong move can change the timing of any purchase. The next decision point is the earnings release itself, where the stock has to justify the run he said made him careful.