Cramer's 'Mad Money' Recap: Play Gardner Denver With Eye on Oil

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With oil prices down, investors should look for stocks that are too cheap compared with others in their sector, Jim Cramer told viewers of his "Mad Money" TV show Wednesday.

To this end, Gardner Denver (GDI Quote) is a smart play.

Gardner Denver makes compressors, blowers, and vacuum pumps that aid oil companies in cleaning wells before drilling. The parts Gardner Denver makes can also be used to clean up industrial waste, so it isn't a pure oil play but ought to benefit when oil prices rebound.

Compared with similar stocks such as Baker Hughes (BHI Quote), National Oilwell Varco (NOV Quote) and Schlumberger (SLB Quote), Gardner Denver's multiple is too low.

"We're in a huge period of capital expenditure for companies that need to get oil," Cramer said. When oil prices go up, Gardner Denver's stock should rise. Additionally, the company generates 50% of revenue from sales outside of America, meaning it's not entirely dependent on the American consumer.

"Earnings estimates that are too low breed higher stock prices," Cramer said. Because a large proportion of its international earnings come from the European Union, Gardner Denver makes money abroad that will convert to dollars at an incredibly generous rate. A top-tier company in all the markets it serves based on market share, Gardner Denver is a good buy, Cramer said.