Cramer's 'Mad Money' Recap: 'Fallen Angels' Prepare for Flight

Quest Is Cheap

Lastly, Cramer named Quest Diagnostics (DGX Quote), which he owns for his charitable trust, Action Alerts PLUS, as an angel that has fallen from grace.

Quest fell on news of its split with Oxford Health, he said. However, the news shouldn't have affected the stock because it was already known and should have already been built into Quest's price, he said.

Though losing Oxford wasn't great news for Quest, Cramer believes that it's time to get into the stock now.

Last week, it reported a better-than-expected quarter and has become dirt-cheap based on its own bad guidance, Cramer said. Quest is assuming it will lose all of its UnitedHealth (UNH Quote) business, as UNH owns Oxford. (Cramer owns UnitedHealth for his charitable trust.)

But this shouldn't happen, he said. Based on this assumption, Quest, is low-balling what its shares should earn.

Quest's guidance, estimates and bar all have been set too low, Cramer said. But the fact that it should pull off better-than-expected earnings will send the stock higher.

Cramer welcomed Jones Soda's (JSDA Quote) Chairman and CEO Peter van Stolk to the show. Cramer asked him if the stock's ramp should continue now that it has left Target (TGT Quote) and embarked on a different distribution method. (Jones' exclusive two-year canned soda contract with Target expired on Dec. 31.)

"Yes, it can," Stolk said. "Target is a great retailer, and we will continue to work with them.