Cramer's 'Mad Money' Recap: Sensible Stocks (Final)

Search Jim Cramer's Mad Money trading recommendations using our exclusive Mad Money Stock Screener and watch Jim Cramer's Mad Money Post Game video exclusively on TheStreet.com.

---

NEW YORK (TheStreet) -- "Common sense is nowhere to be found in this market," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said practically every day the market gets it wrong, sending the wrong stocks higher and the right ones lower.

Take today. Cramer said when oil was at its highs for the day, the best performing group were the brick-and-mortar retail stocks, precisely the companies that get hurt the most from higher oil prices. Cramer said the consensus seems to be that higher oil prices means the economy is picking up, which is good for retail. But that same logic also says that if oil goes up too high, that's bad for retail, as shoppers will cease to shop.

Cramer said with logic like this permeating Wall Street, investors need to forego some short-term gains and start piling into stocks that make sense for the long term, stocks like Caterpillar (CAT) and Boeing (BA), two stocks which he owns for his charitable trust, Action Alerts PLUS, along with United Technologies (UTX).

Cramer said all three of these companies have told us that all systems are go, and better still, they've already baked in all of the negatives, like rising interest rates in China and sky-high oil prices, into their forecasts. Cramer said these companies are also rewarding shareholders with higher dividends and clean balance sheets to boot.

"Is retail in control of its own destiny?" asked Cramer. He thinks not. Yet he said companies like Caterpillar, which recently acquired Bucyrus, will make a ton of money as oil prices rise, as Bucyrus makes equipment for mining less expensive coal. Likewise with Boeing, which is seeing huge demand for more fuel efficient planes, and with United Technologies, which is also at the forefront of energy efficiency, he said.

Cramer said some investors are flocking to the consumer staple stocks right now, but that is also a mistake. He said these companies are seeing their costs get squeezed and more and more customers are opting for the less expensive store brands. Plus, many of these names have already had huge runs, meaning there isn't any upside left.

"The time is now," said Cramer, to start piling into the stocks that make sense.

1 2 3 Next › Last »