Cramer sees cheap stocks galore

Cramer: This stock is cheap
Cramer: This stock is cheap   

With Thursday's market rally, there is plenty of speculation floating around as to what caused the market to soar.

Jim Cramer warned that it is easy to use broad data to explain the rally, such as low jobless claims or positive data from China and Europe. Why not? It's spoon-fed information and sounds really snazzy. Plus, you don't have to do as much research—bingo!

However in order to unlock real profits and understand what is truly behind a day like Thursday, Cramer takes a different standpoint. His view stems from an event-driven position. Meaning, performance is based on company earnings reports and what is happening right now.

Further diving into the mind of Cramer, he revealed his steps on how to figure out the market rally.

First, figure out what is going up. Second, figure out why it is going up. Third, figure out its impact on the general market.

The "Mad Money" host has a list of 10 stocks that he thinks duked out the battle of the bears and bulls and led to Thursday's rally. Highlights include 3M (MMM) and Caterpillar (CAT). "If Caterpillar can do this kind of number when things are bad, what number can it print when things are good?"

At the end of the day the rally came from simple numbers. "Blame the Fed? How about blame corporate America for doing so well."

Read More Think like Cramer: Analyzing the market rally

A Boeing ground test crew member examines a Boeing 787 Dreamliner.
Getty Images
A Boeing ground test crew member examines a Boeing 787 Dreamliner.

Crude oil closed yet again in the low 80's, and many are now wondering if the North American oil and gas renaissance will continue.

Flotek (FTK) is one of the leading makers of environmentally friendly chemicals used for oil, gas drilling, well completion and production.

Unfortunately with the price of oil getting crushed, so has the stock. However, Flotek reported fantastic earnings on Thursday with higher than expected revenues rising 19 percent, year over year. Even better, management said that October has been trending well, with no negative impact from the volatility of commodity prices.

Cramer thinks that's huge, and thinks this stock could have much more upside. To gain further insight, he spoke with Flotek CEO John Chisholm.

The CEO calmed fears of the end of the oil and gas renaissance saying, "We really believe that at $85 you can make a stronger case for using Flotek technology … on average you're going to get a 20 percent uplift in the initial production, and sustain that over the first year of the well."

However when a $122 stock like Boeing (BA) has a big swing in one day on Wednesday, Jim Cramer gets suspicious.

He used the case of Boeing as a cautionary tale, not about the company itself, but about how analysts can perceive a stock. He says that's what led Credit Suisse to downgrade such a strong stock on Thursday.

Taking a look back, investors breathed a sigh of relief on Wednesday when Boeing reported and raised its guidance substantially. The stock traded higher at first but then quickly unraveled after the company conference call.

The call revealed that the boost in earnings came from a wide range of Boeing planes, mostly older versions. Earnings did not come from the brand new 787 Dreamliner. As a result, investors assumed the worst, and the stock was crushed.

"I don't know what Boeing could have done more right when it reported. Was the company supposed to say 'earnings raised despite Dreamliner'?" said Cramer.

The "Mad Money" host reminded investors that earnings and cash flow are real, regardless of how they are made.

Read MoreBoeing: Cramer clears the air

Jim Cramer on set of Mad Money
CNBC

As we prepare to head into the holiday season, Cramer likes to take the pulse of the consumer. What better way to do this than to go straight to the source and speak with one of the largest global consumer product companies, to find out where they see the economy headed.

To gain color on what to expect from consumers this winter, Cramer sat down with Martin Franklin, the co-founder and chairman of Jarden (JAH). What has made Jarden successful over the years is the company's approach to finding niche markets and becoming the top player in each. Can they continue to be No. 1?

Cramer thinks so. Though the stock has been largely flat year to date, it saw a jump of more than 5 percent when it reported a strong quarter on Thursday.

"It's across the whole group, and some of it is a reflection on the American consumer, and America as a whole," Franklin said.

Though the company has had a 13 percent gain since its executives last spoke to "Mad Money" 11 months ago, Cramer thinks that it is still too darn cheap and could go higher.

Read MoreHoliday hot stocks: Cramer takes consumer pulse

In the Lightning Round, Cramer continued to find cheap stocks to recommend for fewer favorites.

B&G Foods (BGS): "I didn't like the quarter. We have to talk to the new CEO first, straight from the horse's mouth, and then we can make a decision. Until then, no."

Facebook (FB): "It's run up so much in advance of earnings, that you have to take a little bit off the table. Facebook is very heightened and that's a little bit worrying."

Read MoreLightning Round: Time to sell Facebook?

In the middle of the hideous selloff last week, Cramer created his checklist of items that had to be accomplished in order for the market to have a sustainable rally. Shortly after Microchip (MCHP) released disappointing earnings, one of those items was that we needed technology to rebound.

The newfound strength in technology was confirmed when Avnet (AVT) reported a great quarter. As the largest supermarket of technology in the world, what better way to get a great read on the state of the technology industry than to speak with Rick Hamada, CEO of Avnet.

"We have been able to take advantage of the recent dip in the market in the past week and stepped up to another $55 million in buybacks," Hamada said.

Cramer thinks there must be pockets of real strength in technology, or you wouldn't be able to get that high organic number.

"The United States led the September quarter with the strongest year on year growth of about 11 percent. However, if you look at our global business, you will still see relatively strong growth first in Asia, then in Europe interestingly enough," Hamada said.