It's important to know when to be skeptical and when to believe, Jim Cramer told his Mad Money viewers Tuesday. Too often, when a top-notch CEO stumbles, investors head for the exits. But that's exactly when they should be buying.

Both Caterpillar (CAT) and McDonalds (MCD) come to mind. Cramer said that Cat delivered its first great quarter in years, and even with shares up 5.8% today, he's still a believer and a buyer. Same with McDonalds, where CEO Steve Easterbrook has been doubted ever since he took over, but has continued to deliver quarter after quarter.

Cramer said it's hard to fathom that a penny-a-share earnings miss at 3M (MMM) translated to at $10 decline in the company's stock. 3M is a total buy. Domino's Pizza (DPZ) also delivered strong results and said that the issues it faced, primarily in Europe, are fixable. So why would investors sell shares down 10% in a single day? Cramer said CEO Patrick Doyle deserves the benefit of the doubt.

Other examples included Hasbro (HAS) , which was hammered this time last year, only to soar thereafter, and Alphabet (GOOGL) , the parent of Google, which is surely worth more than it trades at today.

In all of these cases, Cramer said investors need to have faith. They should be buying into these stocks as they decline.

On Real Money, Cramer you have to have some faith in these companies' managements or you would never ever buy a stock at a discount. Get his insights with a free trial subscription to Real Money.

Executive Decision: McCormick and Co.

For an "Executive Decision" segment, Cramer sat down with Lawrence Kurzius, chairman, president and CEO at spice maker, McCormick and Co.  (MKC) , a stock that's fallen $11 a share from its highs.

Kurzius said that McCormick is doubling down on flavor and growth, which is why they recently acquired French's Mustard, Frank's RedHot and Cattlemen's BBQ from Reckitt Benckiser. He said these brands are all quality assets with strong growth and they're profitable. That makes McCormick one of the last growth stories left in the food business.

When asked why they paid a premium to acquire these brands, Kurzius explained that they've been on McCormick's radar for over a decade and when Reckitt decided to sell, there was more than one bidder interested.

Turning to the topic of overall growth, Kurzius said that younger consumers are shying away from packaged foods and want to start from raw ingredients. All of McCormick's products come from clean, simple ingredients and more importantly, they bring the flavors that consumers love. 

The FANGs Are Showing 

"FANG is back," Cramer proclaimed to his viewers. Unfortunately, it's the other FANG. Yes, investors are once again fleeing F-A-N-G, Cramer's acronym for Facebook (FB) , Amazon.com (AMZN) , Netflix (NFLX) and Alphabet (GOOGL) , thanks to disappointing results at Google.

They're buying the other FANG, Diamondback Energy (FANG) , as oil creeps higher.

Cramer said that core growth at Google could indeed be slowing, which will cause investors to take a pause in the stock to reassess. Longer term however, Google has a lot of smart people working there and $94 billion in cash, so he's not worried.

As for Diamondback, Cramer said he'd be a buyer as oil rises, but once crude hits $50 a barrel, investors need to be ready to sell as oil has been trading in a range for quite some time.

Cramer and the AAP team say that in this avalanche of earnings news, they want to highlight the rally in oil. Get in on the conversation and find out what they're telling their investment club members with a free trial subscription to Action Alerts PLUS.

Executive Decision: Magna International

In his second "Executive Decision" segment, Cramer sat down with Donald Walker, CEO of auto parts maker Magna International (MGA) , for a fresh take on the auto industry. Shares of Magna are up 10% for the year.

Walker said that overall, they're seeing steady growth in China and a recovery in Europe. In the U.S., things may be slowing, but they still see good demand over a three-to-five-year period.

When asked about demand from the big three automakers here in the U.S., Walker said that Magna sells globally, but certainly the big three are important clients. Turning toward the hot industry trends, Walker noted that making vehicles lighter continues, while the electrification of vehicles and autonomous features are still in their infancy.

Walker continued by saying that he's not worried that President Trump will undo NAFTA. He said the system works pretty efficiently already and a few adjustments are probably in order. Magna is headquartered in Canada and has employees in both the U.S. and Mexico.

Cramer said that Magna is an inexpensive stock.

Lightning Round

In the Lightning Round, Cramer was bullish on Hertz Global Holdings (HTZ) , Honeywell (HON) , AES Corp (AES) , PetMed Express (PETS) , PVH Corp (PVH) , Allergan (AGN) , Valeant Pharmaceuticals (VRX) , LAM Research (LRCX) , Applied Materials (AMAT) and KLA-Tencor (KLAC) .

Cramer was bearish on Fastenal (FAST) , PTC Therapeutics (PTCT) , Macy's (M) , Cutera Inc (CUTR) and Ultra Clean Holdings (UCTT) .

Off the Charts

In the "Off The Charts" segment, Cramer checked in with colleague Tim Collins over the chart of General Dynamics (GD) , which reports earnings later this week.

Cramer said if General Dynamics beats the estimates and maintains its guidance, the stock would be a buy on any weakness. Collins agreed. He noted that the stocks' daily chart shows its recent breakout to the upside after trading in a channel since May. He saw a floor of support at $205 and $196, meaning there wasn't a lot of downside, but the upside potential is $215 a share.

Turning to the weekly chart, General Dynamics is displaying a textbook bullish chart, steadily marching higher. Here Collins saw a floor of support at $200 a share, with the Chaikin oscillator about to make a bullish crossover and the stochastics close to 50. He felt that $230 a share could be possible over the next 12 months.

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

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