Cramer's 'Mad Money' Recap: Good Cheap Stocks

"I have liked this stock from day one," he said. Many people are turned off by Intuitive Surgical because they don't know what it does, Cramer said. These people panicked on Friday and helped keep the stock down.

Intuitive Surgical makes surgery less invasive, which means people get in and out of the hospital faster, Cramer explained. Cost containment in health care is one of the best trends around, he said, and insurers and patients are powering it.

One of the reasons the company beat its quarter "so handily" is that people don't understand its business model, he said. It may make some really high-tech gear, but at the end of the day, its business model is like Gillette's razor-blade model.

People think the company will run out of growth sooner or later because it won't have any place left to sell its machines, but this is just the beginning for Intuitive, Cramer said. However, Cramer said that when all of its machines are in place, that's when its growth will go up more and more.

Places that use the machines to perform a surgery need to buy disposable add-ons, he explained. This is where Intuitive Surgical makes its money, just like Gillette makes its money with its disposable razor blades.