There's a lot more to investing than just watching the Federal Reserve, Jim Cramer reminded his Mad Money viewers Monday. Making investment decisions based on the Fed alone is a fool's game, Cramer said, especially since Fed chair Jay Powell has learned from last year's mistakes.
Cramer said there's no need to play the Fed guessing game, because from now on, the Fed will be using common sense, raising rates when the economy strengthens and cutting them when weakness dictates. Investors need to get back to choosing stocks based on earnings and fundamentals.
Case in point: PepsiCo (PEP) - Get Report , which reports later this week. Shares of PepsiCo are up 20% for the year and now trade at 24 times earnings. Cramer said that's more expensive than the average stock, but Pepsi has growth and yields 2.9%, making it worth the price. Investors should pay attention to PespiCo's conference call, where management should tell us the demand remains strong and commodity costs for things like freight and packaging are beginning to moderate.
If that happens and PepsiCo beats the benchmarks, Cramer said shares would be a buy, especially in the overall market makes them even cheaper.
The name of the game is buying high quality stocks on the cheap, Cramer concluded, and that applies no matter what the Fed watchers are worried about.
On Real Money, Cramer says he's a believer in the stair step moves of a bull market. Get more of his insights with a free trial subscription to Real Money.
Executive Decision: Constellation Brands
For his "Executive Decision" segment, Cramer spoke with Bill Newlands, president and CEO of Constellation Brands (STZ) - Get Report , about his company's most recent quarter and their investment in Canopy Growth (CGC) - Get Report , after the news that Canopy's CEO, Bruce Linton, was fired for poor performance.
Newlands reiterated that cannabis will be a $200 billion business over the next 10 years and Canopy remains the company best positioned to take advantage of those opportunities. But while they are winning in all of the markets the matter most, Newlands said it was time for the company to have a new leader who could accelerate their growth.
When asked about that growth, Newlands noted that the majority of Americans favor legalization, so it won't be long before that happens at the federal level. In the meantime, there are opportunities for medicinal uses of cannabis as well as opportunities in edibles, drinks and other infused products and a multitude of other overseas opportunities.
Turning to their other businesses, Newlands said that beer continues to be a strong performer, with Modelo seeing accelerating growth. Constellation continues to target between 7% and 9% growth for Modelo.
As for the effects of tariffs and trade, Newlands reiterated that Constellation's authentic Mexican beers must be made in Mexico and they expect trade tensions with Mexico to deescalate in the future.
Cramer and the AAP team are taking a closer look at Kohl's (KSS) - Get Report nationwide rollout of the Amazon (AMZN) - Get Report return program. 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: Vici Properties
Pitoniak said casinos remain some of the cheapest experiential properties out there and they're not something Amazon can put into a box and ship to your door. We are creating a culture that likes to gather, he said, and casinos and sports venues are the perfect places to gather and share an experience. They are one of the few places left that compels people to leave home.
Pitoniak also commented on the deal between Caesar's Entertainment (CZR) - Get Report and Eldorado Resorts (ERI) - Get Report , which will provide Vici with a right of first refusal on a number of new properties to restock their growth pipeline for years to come.
Symantec and Broadcom
Investors should always be on the hunt for companies with great management, but what does great management even look like? Cramer said viewers should look no further than Symantec (SYMC) - Get Report and its new CEO, Rick Hill, as an example.
Symantec had been floundering lately. When the company last reported horrendous guidance in May, the board ousted CEO Greg Clark and installed Hill as his successor. In just two months, Hill brokered a deal to sell the company to Broadcom (AVGO) - Get Report . Cramer noted that while this deal is not yet final, the fact that Hill was able to get this far in just two months' time is astounding.
However, the easy money has now been made in Symantec and Cramer would not be a buyer. Instead, he recommended buying the acquirer, Broadcom, which if it completes the Symantec deal, will have made two excellent software acquisitions in a row. Cramer said the outlook for Broadcom looks promising now that trade tensions have decelerated and the fundamentals are once again beginning to come back into focus for this well-run company.
Time to go Shopping
In his "No-Huddle Offense" segment, Cramer said he sometimes marvels at the market's simplicity. On Friday, we received a strong jobs report and today, investors were snapping up the best of the retailers.
Among Cramer's favorites were Walmart (WMT) - Get Report , up 21% for the year with the best same store-sales numbers out there, Costco (COST) - Get Report with its 90 million paying members, and Lululemon Athletica (LULU) - Get Report , which is also among the strongest growth names in retail.
Cramer added that Home Depot (HD) - Get Report remains a go-to name for many investors when the job market is booming, and yes, Amazon is always a buy ahead of the company's annual "Prime Day" shopping event that is now spanning multiple days.
In the Lightning Round, Cramer was bullish on Danaher (DHR) - Get Report , General Electric (GE) - Get Report , Abbott Labs (ABT) - Get Report , Starbucks (SBUX) - Get Report , McDonald's (MCD) - Get Report and Marathon Petroleum (MPC) - Get Report .
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At the time of publication, Cramer's Action Alerts PLUS had a position in KSS, AMZN.