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Those unloved industrial stocks are starting to look pretty good again, Jim Cramer told his Mad Money viewers Tuesday -- but not for the reasons you may think.

Cramer said it's pretty clear the market continues to loathe the oil and gas stocks. Now, thanks to the revelation by JPMorgan Chase (JPM) - Get Report that the bank has over $44 billion of loans to the oil sector, it's pretty clear the markets will continue to loathe the financials as well.

But what about those cyclical industrial stocks that have been beaten down for months on worries about China? Cramer said after the rumors yesterday that United Technologiesmay be in merger talks, this once-forgotten group just got a whole lot more interesting. If United Tech could catch a bid, that means Eaton (ETN) - Get Report , another very cheap stock, might catch one, too. Or what about Cummins (CMI) - Get Report with its 4% yield, or Ingersoll-Rand (IR) - Get Report , or even John Deere (DE) - Get Report ? Before yesterday, Cramer would've said "dream on," but today, anything seems possible.

Even the beleaguered stock of Alcoa (AA) - Get Report , which has over $6 billion in aerospace revenue but trades with a market cap just over $10 billion, seems attractive.

That's why Cramer said he's begun doing some homework on the industrials to start scouting for the real bargains.

Executive Decision: Dan Rosensweig

In his "Executive Decision" segment, Cramer sat down with Dan Rosensweig, president and CEO of Chegg (CHGG) - Get Report , the textbook rental and student services company that just posted a 2-cents-a-share earnings beat on a 19% decline in revenue with weaker-than-expected guidance that sent shares plunging 35%.

Rosensweig reminded viewers Chegg is in the middle of a transformation from being a paper textbook rental company to one of comprised of eTextbooks and digital services. Making transformations is hard, he said, especially as a public company and in a difficult market. That said, Rosensweig noted Chegg needs to do a better job of explaining itself to analysts.

Rosensweig said many of the accounting changes as part of the transition are revenue recognition issues and don't affect the number of students served or, ultimately, the bottom line.

It is Chegg's digital services, such as online tutoring and scholarship services along with eTextbooks, that will be the future of the company. Rosensweig said digital services have gone from zero to $120 million in revenue in just four years and are growing at 30%.

Cramer said that at just over $3 a share, Chegg has a good story to tell.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Robert Moreno over the chart of direction of oil stocks given the continued volatility in the price of crude. Viewers will recall that Moreno predicted oil stocks would trade sideways back in October.

Using a daily chart of Exxon Mobil (XOM) - Get Report , Moreno noted the stock has indeed remained unchanged since his October call, but recently, Exxon has been tracking higher with the MACD and Accumulation Distribution line both confirming the move. However, Moreno was concerned over the low volume in Exxon, which made him skeptical.

Turning to a daily chart of Chevron (CVX) - Get Report , Moreno noted this stock just broke out of its ceiling of resistance at $85 and if it breaks $89 it could be smooth sailing for Chevron.

TST Recommends

Next, Moreno looked at Pioneer Natural Resources (PXD) - Get Report , calling attention to this stock's triple bottom, a reliable bullish indicator.

Finally, Moreno called out Schlumberger's (SLB) - Get Report invest head-and-shoulders formation, another bullish indicator.

Cramer cautioned, however, that even though these charts seem bullish, if oil trades any lower the oil stocks could turn on a dime and head lower as well.

Executive Decision: Stephen Jones

In his second "Executive Decision" segment, Cramer sat down with Stephen Jones, president and CEO of the waste and energy company Covanta (CVA) - Get Report  that posted an 11-cents-a-share earnings miss, but still delivers a 7.5% dividend yield.

Jones said the markets misunderstand Covanta, treating it as an energy stock even though 75% of its earnings stem from waste and only 25% from power generation.

Despite falling commodity prices, Jones said his company's dividend remains intact because most of its waste services are on long-term contracts with municipalities.

When asked about Covanta's power services, Jones explained Covanta generates enough power for one million homes. On the recycling side, the company has been able to reclaim over 500,000 tons of metals and one billion aluminum cans.

Cramer said Covanta remains an interesting company and stock.

Lightning Round

In the Lightning Round, Cramer was bullish on Skyworks Solutions (SWKS) - Get Report , Palo Alto Networks (PANW) - Get Report , Randgold Resources (GOLD) - Get Report and Lockheed Martin (LMT) - Get Report .

Cramer was bearish on Micron Technology (MU) - Get Report , Fortinet (FTNT) - Get Report , Kite Pharma (KITE) , Barrick Gold (ABX) and Chico's (CHS) - Get Report .

No Huddle Offense

In his "No Huddle Offense" segment, Cramer said there have been a number of stellar earnings reports this quarter, but nothing like that of Home Depot (HD) - Get Report , which saw a dazzling 8.9% rise in same-store sales.

Home Depot is, after all, just a retailer and a big one at that. The company is also levered to housing, which hasn't been that hot. But despite having nothing really new in its business, Home Depot is hitting it out of the park, Cramer said. With 1.9 million new households expected to be formed this year, things are only looking up for this great retailer.

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

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