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Cramer: This Trump stock is exactly what's working in the economy right now

Elizabeth Gurdus

Jim Cramer has been following the rise of industrial stocks since the election, and one particular manufacturer caught his attention this week: Fastenal (NASDAQ: FAST).

The maintenance, repairs, and operation supplies distributor had a volatile 2016, with the stock trading up to $50 in the first few months of the year before declining to $38 by November.

"But since the election, like so many other cyclicals, this stock has caught fire, climbing up to 51 bucks and change as of today, including a 10 percent rally just since the beginning of 2017," the " Mad Money " host said Thursday.

Cramer attributed Fastenal's recent success to a few trends: industrial production and manufacturing orders picking up, deregulation coming from Washington, and manufacturing inventories getting smaller, which could give Fastenal more pricing power.

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"We know this business has gotten a lot better because deregulation has given business people a much more optimistic feel, since they need no longer fear the federal government's intervention," Cramer said.

But Fastenal hasn't just been enjoying the ride, Cramer noted. The company has been actively pursuing growth opportunities like cross-selling to existing customers, revamping its stores, and adding to its array of products.

As a result, sales ticked up nearly 4 percent in January, and over 6 percent in February – "a huge improvement," Cramer said.

Cramer's only hesitation about Fastenal's run is that the stock is still relatively expensive, trading at 25 times its earnings estimates for 2018. But if the economy keeps getting better, Cramer said those estimates could prove to be too low.

"This is more than just a Trump stock," Cramer said. "It's a metaphor for exactly what's working in this economy right now, and I have to say that I like it."

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