Jim Cramer's 'Mad Money' Recap: This Market's Got Legs

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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) 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) 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), 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), Microsoft (MSFT), Schlumberger (SLB) and Celgene (CELG), 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), 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), a big PVH customer, Chirico said things continue to improve at Penney.

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