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NEW YORK (TheStreet) -- Stop the presses! Value actually matters, Jim Cramer proclaimed to his Mad Money viewers Tuesday. Better still, the market's value move may actually have some legs.

Cramer called out Caterpillar (CAT) - Get Report as a shining example of the market's move towards valuation. Caterpillar has been missing estimates for ages, Cramer explained, but it now trades at just 14 times vastly reduced estimates, far less than the S&P 500, which trades at 17.2 times earnings.

Can things actually go right for Caterpillar? United Rentals (URI) - Get Report said business is brisk and the Federal Reserve told us things are improving. Coal seems to be bottoming and the trucking industry continues to be on fire. Add all those things together and investors are smart to take a chance on Cat, Cramer concluded.

The same applies for Johnson & Johnson (JNJ) - Get Report, a stock Cramer owns for his charitable trust, Action Alerts PLUS. Cramer said J&J is a strong drug company with a great balance sheet and a new CEO willing to shake things up, yet it trades at a big discount to its peers.

Still other examples of value stocks include IBM (IBM) - Get Report, Microsoft (MSFT) - Get Report, Schlumberger (SLB) - Get Report and Celgene (CELG) - Get Report, another Action Alerts PLUS holding.

Executive Decision: Manny Chirico

For his "Executive Decision" segment, Cramer sat down with Manny Chirico, chairman and CEO of apparel maker PVH Corp (PVH) - Get Report, a stock that's down 14% so far in 2014 thanks, in part, to a brutal winter in much of the country.

Chirico said many of the initiatives put in place last year will begin to bear fruit in the second half of 2014. Already, the company is starting to see better sales of Calvin Klein jeans in both Europe and North America, he said. Meanwhile, the company's Asian business continues to expand.

Chirico said PVH is still investing in its Warnaco acquisition from last year, but the light at the end of the tunnel is coming. He said the tough winter here in the U.S. continued to slow sales in both February and March, but he's optimistic for a bounce back once the weather finally warms up.

When asked about J.C. Penney (JCP) - Get Report, a big PVH customer, Chirico said things continue to improve at Penney.

With Chirico confirming that $10 a share of earnings power is indeed possible at PVH, Cramer said the stock is just an outright buy given how far shares have fallen and how polarized the analysts are on the stock.

Healthy Health Insurers

Like it or not, Obamacare is alive, Cramer told viewers. While the Affordable Care Act was initially thought to be a boon for the hospitals, it turns out the insurers and managed care providers have been the real winners. That's how stocks like Aetna (AET) and Humana (HUM) - Get Report have been able to rally by 47% and 71%, respectively, over the past 12 months.

While many expected the insurers to be crushed by declining reimbursement rates, big taxes on premiums and the rule that they must insure everyone including those with preexisting conditions, in reality the effects were far less worrisome.

Cramer reminded viewers these companies helped write the law, which helped reimbursement rates to fall only 4% to 6% and not the 8% many were expecting. Taxes of premiums were simply passed on to consumers, and it turns out the costs of insuring those with preexisting conditions has been more than offset by the mandate that more healthy people must have insurance as well. All in all, more people with insurance means more business for insurers.

So which stocks are attractive? Cramer said UnitedHealth Group (UNH) - Get Report is the best managed, but also the most expensive at 13 times earnings. He liked Wellpoint (WLP) on a pullback, along with Aetna. He was not a fan of Humana, which is already up big, nor of Cigna (CI) - Get Report.

Lightning Round

In the Lightning Round, Cramer was bullish on Boeing (BA) - Get Report, Acuity Brands (AYI) - Get Report, Accenture (ACN) - Get Report, GrafTech International (GTI) and Dollar General (DG) - Get Report.

Cramer was bearish on Petrobras (PBR) - Get Report and Cognizant Technology (CTSH) - Get Report.

Off the Charts

In the "Off The Charts" segment, Cramer went head to head with colleague Bob Lang to show viewers what the phrase "rotation" really means. Using the iShares NASDAQ Biotechnology (IBB) - Get Report exchange-traded fund, Lang and Cramer demonstrated how the biotechs are getting crushed as big fund managers now prefer the industrial and cyclical stocks.

Using a daily chart, Lang noted that the biotechs have fallen 12.4% in just a month on heavy volume, signaling that the big boys are indeed liquidating their positions. The Williams oscillator, or WSM, signals a deep oversold condition, as the group broke through its 50-day and 100-day moving averages.

But as Cramer noted, the weekly chart shows a different picture, one of only a minor correction in a much larger uptrend. Lang noted similar pullbacks in June 2013 and November 2012, both of which were terrific buying opportunities.

Cramer said that in the short term the outlook for the biotechs is grim, but he noted that stocks like Celgene and Gilead Sciences (GILD) - Get Report are still fabulous companies, ones that will snap back just as soon as the current wave of selling has subsided.

No Huddle Offense

In his "No Huddle Offense" segment, Cramer explained why the shareholders of big, established tech and biotech companies have been feeling the heat of late. It's because of the red-hot IPO market.

Cramer said the venture capitalists know when the market is craving new deals, and that time is now. That explains why so many initial public offerings are being announced, most notably today -- Box and Dropbox.

But all the money that's pouring into these new IPOs needs to come from somewhere, said Cramer, and it's coming from big fund managers cashing in on their slower-growing tech and biotech holdings.

Cramer said that in a perfect world, the established players would be acquiring these newcomers themselves. But with the market willing to pay so much more, their venture capital backers are choosing to roll the dice and hope for that big first-day pop instead.

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

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-- Written by Scott Rutt in Washington, D.C.

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At the time of publication, Cramer's Action Alerts PLUS had positions in CELG and JNJ.