Cramer's 'Mad Money' Recap: H-P, Hurrah

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"Tech stocks are where you want to be in this market," said Jim Cramer on his "Mad Money" TV show Tuesday.

The tech sector, he said, has "convincingly moved into a leadership position."

Cramer said that viewers are probably tired of him recommending Hewlett-Packard (HPQ Quote - Cramer on HPQ - Stock Picks), a stock he owns for his charitable trust, Action Alerts PLUS. But the company had a legitimate upside surprise of 5 cents in its recent quarter, and it raised guidance.

Also, H-P benefited from the price wars of its component suppliers, which have helped Hewlett-Packard lower costs without lowering its prices.

Cramer largely credits H-P's success to CEO Mark Hurd, who he said turned the company around after being "a bit of a dud."

Calling into the show, Hurd told Cramer that the "best days of H-P are ahead of it, not behind it." Hurd attributed his optimism to the company's strong growth across the board and to its focus on fundamentals such as cost structure, service and support.

Further, Hurd said, commenting on the recent $1.6 billion acquisition of data center automation software maker Opsware(OPSW Quote - Cramer on OPSW - Stock Picks), "we buy companies that are leaders."

With 65% of its revenue coming from outside of the U.S., Cramer likes that H-P is an international play.

Cramer, who remains bullish on the sector, believes that H-P at $50 is the cheapest big-cap tech stock out there.

To view Cramer's interview with Mark Hurd, please click here.

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