Skip to main content

Good things happen to those who wait, but better things happen to those who buy, Jim Cramer told his Mad Money viewers Monday. The market may be up big for the year, but there are still a lot of reasons why stocks are inexpensive.

The first reason stocks are cheap is the GOP tax bill, which was in total disarray a few weeks ago, but now looks to be a pro-business juggernaut. When the bill passes, the estimates for many companies will be heading higher, Cramer said, including the transports, banks and those companies with big sums of cash overseas.

The second reason stocks are cheap? Sentiment. Despite sizable gains for the stock market, most investors on Main Street have not gotten excited and invest only in indices or still have their cash on the sidelines.

But perhaps the biggest reason the market's move isn't over yet is that companies keep making themselves more appealing. Campbell Soup's (CPB) purchase of Snyder-Lance (LNCE) makes it a snack food powerhouse, while Hershey (HSY) buying Amplify ( BETER) sent shares of Amplify up 71.5% in a single season.

Cramer and the AAP team are calling up Honeywell (HON) from the bullpen and adding it to their portfolio. 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: United Rentals 

For his "Executive Decision" segment, Cramer sat down with Michael Kneeland, president and CEO of United Rentals (URI) , the equipment rental company with shares that are up 59% for 2017.

Kneeland said that today is the 20th anniversary of United Rentals and a lot has happened during those 20 years. While the 2008 recession was the company's most challenging time, today there is an economic boom that is being felt in just about all of their markets and verticals.

The question for most companies isn't just the cost of buying versus renting, Kneeland explained, it's the cost of buying, maintaining, storing, insuring and transporting versus renting.

When asked about capital allocation, Kneeland said United Rentals has bought back a lot of its own stock but still keeps cash on hand for more acquisitions, as there are plenty of opportunities for growth. Tax cuts would only increase his company's cash flow, earnings and returns, he said, as well as be a windfall for many of their customers.

Get a Taste of the Food Sector

Of all the sectors that have been rallying as of late, the one that's most surprising is food, Cramer told viewers. Just in the past few weeks, the supermarkets have come back in vogue, the protein stocks (like Tyson Foods (TSN) ) have been on fire and today we saw mergers with Campbell Soup and Hershey.

Among Cramer's favorites in the group remains ConAgra Foods (CAG) , a stock that's rallied from $32 to $38 but still trades for 18 times earnings.

ConAgra's been making a number of smart moves since getting a new CEO in 2015. For starters, the company spun off Lamb Weston (LW) , the company's commercial food business in November 2016 and shares have soared 85%. ConAgra also continues to double down on its brands that are thriving, accelerating their growth.

ConAgra may also be on the hunt for a takeover. Cramer singled out B&G Foods (BGS) and Pinnacle Food (PF) as potential targets for a reinvigorated ConAgra.

Executive Decision: Ollie's Bargain Outlet

In his second "Executive Decision" segment, Cramer sat down with Mark Butler, chairman, president and CEO of Ollie's Bargain Outlet (OLLI) , the off-price retailer with shares that are up 85% for the year.

Butler said there are still a lot of details that need to be sorted out with the Republican tax plan, but his company is ready to take advantage of the legislation, if it happens.

As for his company's business, things couldn't be better, he said. Butler explained that with many stores closing, there is no shortage of closeout merchandise to buy. Ollie's army of loyalty members now stands at 8.2 million members and is growing faster than the company's sales.

Butler added that many categories of merchandise are doing well, because customers never know what they'll find and they're willing to travel great distances to get a bargain and save money.

Cramer told viewers to stick with Ollie's.

No-Huddle Offense 

In his "No-Huddle Offense" segment, Cramer proclaimed there's a shortage of good cyclical stocks. In an sector where there used to be thousands of companies, there are now only hundreds, he said, which makes finding stocks that have not already run up big a real challenge.

Whether you're looking for construction equipment with Caterpillar (CAT) or United Rentals, farm equipment with Deere & Company (DE) , tools, rails or aerospace, there just aren't that many stocks come by.

And that's why all of these names are not done going higher.

Lightning Round 

In the Lightning Round, Cramer was bullish on Cimarex Energy (XEC) , First Solar (FSLR) , Groupon (GRPN) , Halozyme Therapeutics (HALO) , Roku (ROKU) , Sierra Wireless (SWIR) , Magellan Midstream Partners (MMP) and Visa (V) .

Cramer was bearish on Statoil (STO) , Zynga (ZNGA) , Energy Transfer Partners (ETP) and Spirit Airlines (SAVE) .

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.

More of What's Trending on TheStreet:

At the time of publication, Cramer's Action Alerts PLUS had a position in HON, XEC, MMP.