Big Earnings Week Ahead: Cramer's 'Mad Money' Recap (Monday 2/26/18)

There's a lot to like in this week's earnings reports, Jim Cramer announced to his Mad Money viewers Monday, after welcoming them back to Cramerica after an Olympic-induced hiatus. Cramer wasted no time getting back to business with this week's game plan.

Cramer said he'll be watching both Macy's (M) and AutoZone (AZO) tomorrow, along with Workday (WDAY) , Square (SQ) and EOG Resources (EOG) . He was bullish on Macy's and Workday, but told viewers to let AutoZone shares cool off and steer clear of all the oil stocks. Cramer was bullish on the upcoming JPMorgan Chase (JPM) analyst meeting, where he expects to hear good things.

Wednesday brings earnings from Lowes (LOW) and TJX Companies (TJX) and also Salesforce.com (CRM) . Cramer was bullish on Lowes and rival Home Depot (HD) , as well as on Salesforce. TJX however, has been hit or miss recently, he added. Honeywell (HON) also hosts an analyst meeting Wednesday and Cramer said this company has a terrific CEO.

The earnings continue on Thursday with Best Buy (BBY) , Kohl's (KSS) and Nordstrom (JWN) . Cramer was bullish on all three. Also on Thursday, VMWare (VMW) , a long-time Cramer fav.

Finally on Friday, the retail earnings continue with a resurgent Foot Locker (FL) and JC Penney (JCP) , which is up against a lot of increased competition.

Beyond earnings, Cramer said all eyes will be on new Federal Reserve chair Jerome Powell, who will be testifying before Congress for the first time.

Cramer and the AAP team offer up some of their thoughts and analysis on Apache (APA) and Allergan (AGN) .

What Happened During the Olympics?

So what'd you miss in the markets if you were only watching the Olympics? Cramer said two weeks ago, stocks seemed like they were in dire straights, as negativity swelled. But in reality, much of the weakness was caused by traders using margin to bet on market volatility staying benign. When volatility spiked, these investors were flushed out of their positions with swift and sizable consequences.

Now that the market has returned to reality, the fact is that business remains pretty good. The Trump agenda of regulation rollbacks and big tax cuts for businesses is working, and the market's leadership has expanded from just tech and dividend stocks to now include cyclicals like Boeing (BA) , Caterpillar (CAT) and others.

Cramer said he's begin to swap out of dividend stocks in favor of these cyclical growth names. There are more buys than sellers in this market, he added, but timing is more important than ever.

General Mills and Blue Buffalo

With the market rebounding at lightning speed, you might feel like you missed the move. But Cramer said there is one stock that's been left behind and that's General Mills (GIS) , which announced on Friday it's buying pet food maker Blue Buffalo (BUFF) for $8 billion.

Shares of General Mills fell on the news, but Cramer said that makes General Mills a screaming buy, as the acquisition is a brilliant move.

The humanization of pets is a long-term theme that Cramer has been behind for years, and Blue Buffalo, with its American-made natural and organic products, is at the forefront of that trend. The company has double-digit sales growth but just 3% market share.

But General Mills is also on the upswing, with strong growth last quarter and a solid track record of making great acquisitions, like Annie's, which was also in the natural and organic space.

With shares having already fallen big since the announcement, Cramer said this stock has been unjustly punished and is now way too cheap to ignore.

Executive Decision: Novocure

For his "Executive Decision" segment, Cramer sat down with Bill Doyle, chairman at Novocure (NVCR) , the biotech using tumor-treating field technology to disrupt the spread of brain cancer cells in the body. Shares of Novocure are off 10% from their January highs.

Doyle explained that their latest data are showing the 5-year survival rates of patients hitting 30%, up from just single digits a few years ago. Beyond that, patients' quality of life has greatly been improved in what would otherwise be a degenerative disease.

When asked what was next for the company, Doyle said they are still in the early days of treating brain cancer, as Novocure just received reimbursement approvals in Japan, for instance. Novocure is also exploring their technology with other cancers like lung, pancreatic and even ovarian cancers.

Cramer said that Novocure is a company that is not only doing well, but also doing good for so many people.

Cramer and the AAP team are looking at new home sales data and what that means for home prices and the cost of borrowing. Find out what they're telling their investment club members and get in on the conversation with a free trial subscription to Action Alerts PLUS.

No-Huddle Offense

In his "No-Huddle Offense" segment, Cramer said while the stock market has recovered during the Olympics, the cause of this year's plunge still leaves reasons for concern.

This quarter's strong earnings should put the rest the argument that stocks were "overvalued," as many pundits would like you to believe. The real cause for the plunge was January's non-farm payroll numbers, which hinted at just enough wage inflation to spike bond yields and add enough volatility to the markets -- where those who bet against volatility were caught on the wrong side of the trade.

Cramer said he's railed against these levered ETF products for years, warning that even the pros don't truly understand what these instruments actually do.

The risks of market manipulation or a complete market breakdown, like we just saw, are far too high. These products should never have been approved in the first place, he said, and there should be an investigation into their role in the meltdown we just experienced. 

Lightning Round 

In the Lightning Round, Cramer was bullish on STMicroelectronics (STM) , PetMed Express (PETS) , Idexx Laboratories (IDXX) and Cisco Systems (CSCO) .

Cramer was bearish on Lumentum Holdings (LITE) and Allergan (AGN) .

Over on Real Money, Cramer says, you want a cyclical? You need a disappointment to get in one. Get more of his insights with a free trial subscription to Real Money.

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.

At the time of publication, Cramer's Action Alerts PLUS had a position in APA, AGN, HON, JWN and JPM.