Cramer Remix: You got a problem with Intel?

Cramer: You got a problem with Intel?
Cramer: You got a problem with Intel?   

The month of June has notoriously known to be an ugly one, with the Dow Jones Industrial average going negative 80 percent of the time in the past decade. Jim Cramer wondered if investors were just whistling past the graveyard on Monday with the Dow closing just slightly in the green.

Does this mean that the market is too expensive, and we are skating on thin ice?

To find out, the "Mad Money" host took an in-depth look at this concept to see if it adds any value to the investment process.

Typically, one would value the entire stock market by looking at what investors are willing to pay, called the price-to-earnings multiple. Right now, the S&P 500 is trading at about 18.5 times earnings, which is a bit high versus historical norms.

But what does that number mean anyway? Cramer has seen stocks trade at 29 times earnings and at 12 or 13 times earnings, back when there was a lot of inflation. We can't look at this number in a vacuum.

"This entire notion of 'the market' is something I balk at. When we talk about the market, we are dealing with a construct that can be very misleading," the "Mad Money" host said.

In reality, the stock market is just made up of pieces of paper that represent ownership interest in various companies. Some are expensive, some are cheap and some are in between.

For instance, there is the world of mergers and acquisitions, which has taken the market by storm lately. Three months ago specialty semiconductor company Altera sold at 25 times earnings. Then, on Monday morning, Intel announced that it would pay $54 a share in cash for Altera, and now it only sells at 40 times earnings.

Some might think that Intel made a ridiculous overpay for Altera and that the deal doesn't make any sense. But Cramer has a hunch that the CEO of Intel, Bryan Krzanich, might know about it.

Ultimately, regardless if the market is overvalued or not, there are plenty of situations out there that could appear expensive but are worth a lot more than investors thought. In Cramer's opinion, that's just how it should be.

Read MoreCramer's verdict: Are stocks insanely overvalued?

Brian Cornell, CEO, Target
Scott Mlyn | CNBC
Brian Cornell, CEO, Target

There is one fact that Cramer just cannot avoid anymore—the world is headed toward slower growth. Either the Fed will raise rates to slow down the economy, or it won't raise rates because of a slowing economy. Both roads lead to slow growth.

"That doesn't mean you should freak out and sell everything. In fact, there are plenty of winners in a low-growth environment, you just need to be willing to look for them," the "Mad Money" host said.

The trick to finding those winning stocks, Cramer says, is to figure out the trends that will continue to grow, regardless of how the economy is doing. The most powerful growth story out there, in Cramer's opinion, is healthcare cost containment.

Why? Because, right now, more Americans are getting access to health insurance. Simultaneously, a large portion of the population—the baby boomers—is starting to get old and will require more medical care. Thus, every healthcare provider out there is looking for ways to control costs.

"The healthcare cost containment plays are in the sweet spot right now. They are riding a powerful long-term trend at a moment when the stock market is about to get desperate for consistent growth," Cramer said.

Read More Cramer: Hot hot hot! Growth plays that will sizzle

In Cramer's long career studying businesses, he knows that there are only a few things more difficult than turning around a struggling department store chain. Yet, that is exactly what Target has managed to do.

After years of disappointment under former CEO Gregg Steinhafel, Target has managed to go from troubled to thriving under leadership from new CEO Brian Cornell. Following a massive data breach and a poorly run expansion into Canada, Cornell took hold of the reins and got Target back on track.

The stock has reflected the rebound, providing a fantastic 40 percent return since he first took over a little less than 10 months ago. Additionally, Cornell has overseen major improvements in Target's U.S. core business. When it reported a little over a week ago, it posted a 7-cent earnings beat from a $1.03 basis, higher than expected revenues and a 2.3 percent increase in same- store sales.

Can this stock continue to make a miraculous recovery? To get the information straight from the source, Cramer sat down with Cornell himself.

The CEO explained that in the past year, the company has elevated its focus on signature categories, specifically relating to style. This includes apparel, home, and beauty, along with baby, kids and wellness. Target has taken the time to try and understand its shopper in order to ensure that stores provide what they expect.

"It's all about making sure every day we deliver that expect more, pay less experience," Cornell said.

Read MoreTarget CEO: How we created Black Friday in April

Traders work on the floor of the New York Stock Exchange.
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Traders work on the floor of the New York Stock Exchange.

Another stock on Monday reminded Cramer that while a dose of skepticism is a good thing, investors should not become so negative that they are blind to opportunity.

As was the case with PVH, the house of apparel that has such brands as Calvin Klein, Tommy Hilfiger, van Heusen and Speedo. PVH is a global company with a significant portion of exposure to Europe, which is a large reason why the company has had a tough time in the past few years.

However PVH blew all doubters away on Monday when it reported better than expected numbers, despite taking a big currency hit. Is this turnaround the real deal? To find out, Cramer spoke with PVH Corp's Chairman and CEO Manny Chirico.

He commented on the strength of earnings, stating that both the Calvin Klein and the Tommy Hilfiger brands were large drivers behind the success.

"That acquisition is really starting to pay dividends," Chirico said.

But what do you do when you own a stock that was slammed, even after it reported a strong quarter? Should you dump it and assume that everyone else must know something you don't?

This is exactly what happened with Ulta Salon, which reported an astounding quarter on Thursday night and then was slammed hard on Friday.

Cramer thinks the selloff had a lot to do with the fact that Ulta had conservative guidance, forecasting only 7 to 9 percent same- store sales growth. When combined with delayed marketing expenses, traders ran for the hills thinking it would be all downhill after this good quarter.

"But I beg to differ," Cramer said.

Ultimately, Cramer thinks investors should ignore the stock's growth trajectory and face the facts. This stock is just in the early innings of a great growth story, and investors should take advantage of this momentary weakness and buy more Ulta.


In the Lightning Round, Cramer gave his take on a few caller favorite stocks:

General Dynamics: "I like General Dynamics, you pushed it hard last week. Notice that Lockheed Martin moved hard, too. These are about exports of military, I like it."

J.C. Penney: "I think J.C. Penney is dead in the water, frankly. In the meantime I think Target can go substantially higher. That's the one my charitable trust owns. Target, not J.C. Penney."

Read MoreLightning Round: This is dead in the water

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