You don't want to own the stocks of companies in peril, but if you know the difference between a broken company and a broken stock, there's money to be made. That's why Jim Cramer helped his Mad Money viewers learn the difference on Tuesday, as he profiled great examples of both.

Too often, investors look for the hot stocks and find they're late to the party. But rather than chase the hot moves while they're happening, Cramer said he prefers to buy the cold stocks that could soon reignite. That's how you catch the entire move and not just the tail end.

Case in point: Amazon (AMZN) , a stock that fell $200 a share last month after President Trump targeted the company over its deal with the U.S. Postal Service. Weeks later, Amazon reported a 43% increase in sales. Cramer said anyone who did their homework would've realized that even if the post office dumped Amazon  cold turkey, it would have only dinged earnings by a nickel.

Other examples of broken stocks include Take-Two Interactive (TTWO) , which fell $7 a share after the company announced a delay in one of its titles, a loss that was quickly reversed after Take-Two announced an official release date.

Similar minutia took down the stocks of International Flavors & Fragrances (IFF) , Waste Management (WM) , Raytheon (RTN) and retailer Nordstrom (JWN) . Cramer said all of these are broken stocks worth buying.

One example of a broken company, J.C. Penney Co.  (JCP) , which today announced the resignation of its CEO, Marvin Ellison. Cramer said he sees a number of red flags for Penney, flags that could affect the company's survival.

Cramer and the AAP team say Honeywell (HON) execs are providing a good outlook for the second quarter and the full year. 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.

Executive Decision: Union Pacific 

For his "Executive Decision" segment, Cramer sat down with Lance Fritz, chairman, president and CEO of Union Pacific Corp.  (UNP) , the railroad at the epicenter of President Trump's war on trade.

Fritz said that while his railroad does move a lot of freight from China into the U.S., he's more excited about our domestic economy, which has been booming. He said Union Pacific is seeing investment throughout the country, spurred by tax and regulatory reforms. Everything from industrial and energy to housing is seeing expansion.

When asked about last quarter's bottleneck issues, Fritz said that those are mostly resolved, but more still needs to be done. He explained that they put a lot of excess capacity into the system to relieve the bottlenecks, but those costs need to taken back out this quarter.

Fritz said while Union Pacific is cutting staff and lowering overhead to make decisions faster, it's still hiring and is even offering signing bonuses up to $25,000 when it finds the right people for the right job. The railroad currently operates 8,600 locomotives with a staff of 42,000 employees.

Finally, when asked about NAFTA re-negotiations, Fritz said he doesn't want to see the U.S. rush to make a deal. There is a path to success where everyone wins and the whole region will benefit, but that deal will take time.

Executive Decision: Micron Technology

In his second "Executive Decision" segment, Cramer sat down with Sanjay Mehrotra, CEO of Micron Technology Inc.  (MU) , fresh off the company's analyst day Monday. Shares of Micron are up 43% for the year, but still trade for just 5.2 times earnings.

Mehrotra said that Micron remains committed to building high value solutions, while reducing costs. He explained that unlike the past, where chips were largely commodities, today with every new generation of chips comes new complexities that increase costs and limit supply. That has led to stability in a market where previously there was none.

Micron's components are inside billions of devices, both in the data center, which remains a strong market, and in the hands of consumers, where smart phones and the Internet of things continues to explode.

Mehrotra closed by saying that he's confident in Micron's future and his company is committed to their return on investment. 

Time to Dig Into Oil

It's time to start building a position in oil, Cramer told viewers. The price of crude has been slowly and smartly moving higher and that trend isn't likely to change anytime soon.

Cramer said it was Schlumberger (SLB) that first predicted oil's rise back to $70 a barrel, after noting a sizable lack of investment over the past few years that will now have countries around the globe scrambling to keep up. While supply and demand is now in balance, inventories remain low, and rebuilding those supplies are what's causing the tightness in the oil market.

Historically, cases like these were remedied by countries like Venezuela, but today, that nearly failed state is only producing 1.3 million barrels a day, down from nearly 2.5 million barrels just a few years ago. Meanwhile, other countries have under-invested, leaving everyone trying to catch up.

Cramer said he likes Chevron (CVX) , a long-time favorite, along with Pioneer Natural Resources (PXD) and yes, Schlumberger.

Over on Real Money, Cramer says oil's rise shouldn't be a surprise. Get more of his insights with a free trial subscription to Real Money.

Off the Tape

In his "Off The Tape" segment, Cramer sat down with Jennifer Hyman, co-founder and CEO of the privately-held Rent The Runway, the clothing rental company with over nine million customers and annual revenue topping $100 million.

Hyman explained that Rent The Runway began renting apparel just for special occasions, but quickly expanded into monthly subscriptions where members have unlimited possibilities for the things they wear every day. She called her company a better asset utilization model, as most garments you buy are only worn a handful of times.

Think about apparel like your stock portfolio, Hyman said. You have things you want to invest in, like a good pair of jeans, while other things you may simply want to try out and rent for a while.

Hyman also explained how equalizing benefits between hourly and corporate workers has made talent a competitive advantage for her company, as everyone is fully invested in the mission. 

Lightning Round

In the Lightning Round, Cramer was bullish on Verint Systems (VRNT) , Proofpoint (PFPT) , T-Mobile US (TMUS) and First Data (FDC) .

Cramer was bearish on Altria (MO) , Corning (GLW) , Beacon Roofing Supply (BECN) , Sprint (S) , Opko Health (OPK) and Flextronics (FLEX) .

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 HON, AMZN, RTN, JWN, SLB.

More from Jim Cramer

Kraft Heinz, VF Corp, Cimarex Energy: 'Mad Money' Lightning Round

Kraft Heinz, VF Corp, Cimarex Energy: 'Mad Money' Lightning Round

Industrials in Value Territory: Cramer's 'Mad Money' Recap (Thursday 6/21/18)

Industrials in Value Territory: Cramer's 'Mad Money' Recap (Thursday 6/21/18)

Jim Cramer: Williams Sonoma Is a Digitized Play

Jim Cramer: Williams Sonoma Is a Digitized Play

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Video: Jim Cramer on Netflix, Disney, Intel, Micron and Goldman Sachs

Jim Cramer Weighs In on Intel CEO Resignation

Jim Cramer Weighs In on Intel CEO Resignation