Cramer Remix: These oil stocks look cheap

With earnings season right around the corner in July, Jim Cramer thinks this is a good time to take a look back at what has happened so far in the second quarter in order to prepare investors for what is ahead.

To start, he reviewed where the market is right now. Investors know that U.S. stocks have moved up nicely in the second quarter. Health care has dominated as the strongest performing sector, followed by financials, technology and consumer discretionary groups.

In Europe, the market is basically flat, and the Asian markets have done quite well, with Japan's Nikkei and Hong Kong pulling some great numbers.

Oil prices have also managed to recover dramatically, with West Texas Intermediate crude up more than 24 percent. Plus, interest rates have climbed, and the super-freaking-strong dollar finally stopped going higher.

He recommended that oil stocks like ConocoPhillips, EOG and Marathon Oil are the best plays on the market right now.

So, with this in mind, what will Cramer look for as we head into earnings season?

"I always think it's worth paying attention to rookie CEOs who are fielding their first or second conference call," Cramer added.

That means he will be watching companies like Boeing, which just announced that long-time CEO Jim McNerney will step down at the end of the month and be replaced by COO Dennis Muilenberg. Will Muilenberg to be able to focus on the positives, or will he target the headwinds of the strong dollar?

Read More Cramer: All eyes on earnings! What to expect in Q2

A European Union and a Greek national flag flutter in front of the Parthenon temple in Athens February 11, 2015.
Alkis Konstantinidis | Reuters
A European Union and a Greek national flag flutter in front of the Parthenon temple in Athens February 11, 2015.

At this point, with all of the Greece drama in Europe affecting the market, Cramer thinks there must be a magician out there working a bit of magic. It seems like every time he thinks the averages have gone down for the count, the market pulls a rabbit out of the hat.

Just take a look at the fantastic run that the health-care group had on Thursday. The Supreme Court upheld Obamacare, which led to an amazing rally in the hospitals. On top of that, Aetna finally made its bid for Humana, and Anthem made attempts to buy Cigna.

Why does the market need these magic tricks so badly?

Greece, of course! Cramer thinks that the talks that are happening with Europe are really nothing like anyone imagined they would be.

"I think Greece isn't going to make a single concession from here on. They have nothing to lose! This government was elected to default. That's what it wants to do," Cramer said. (Tweet This)

At this point, the "Mad Money" host thinks that the market understands that Greece is about to become another Venezuela—except without the oil.

Read More Cramer—Greece is about to become the next Venezuela

Cramer highlighted one of his favorite drug stocks that are smoking hot right now. GW Pharmaceuticals is a U.K.-based company that Cramer considers to be the only true legitimate play on medical marijuana.

Since it is based in the U.K., GW Pharma can study the ingredients in the cannabis plant and use it to create genuine medicine. It currently has one product, called Sativex, which is a mouth spray used to treat MS spasms. While it is in 27 countries, it has not been approved for the U.S.

The stock is also on fire, up 71 percent since December, mostly because of a potential blockbuster drug called Epidiolex that helps to treat rare forms of pediatric epilepsy. It also has earlier stage formulations for type 2 diabetes and schizophrenia.

"We must always be careful how we buy this kind of stock. Limit orders, never all at once!" Cramer said.

To find out more about the company, Cramer sat down with GW Pharma CEO Justin Gover.

"When we started GW, this was not just about epilepsy. It was about taking a class of drugs, cannabinoids, that had been overlooked in modern history and taking them through and exploring their science. There are clearly analgesic, pain-relieving properties of cannabinoids," Gover said.

Fellow Cramericans may remember last month when Cramer conducted burger wars to determine which burger stock would sizzle on the market. Now there is another space that has been heating up the competition—pizza!

Cramer was prompted to take a closer look at pizza stocks when he saw a full page ad taken out in USA Today on Thursday by Papa John's, which claimed that it was the next Chipotle or Panera Bread of pizzerias, because it has so many high-quality ingredients and few preservatives in its food.

"I think it's a terrific example of just how competitive the pizza space is getting. The major chains are all looking for any way they can to differentiate themselves from the competition," the "Mad Money" host said.

Ultimately, after crunching the numbers looking at same-store sales and revenue growth, it was clear to Cramer that while Domino's might be a superior operator, Papa Murphy's is the smaller up-and-comer with faster growth.

But what about the stocks?

"For me, this valuation equation is the cincher. Not only is Domino's the best operator, but it's also got the least expensive stock, even up here at roughly $3 off its all-time highs," Cramer said.

Read More Cramer: Pizza wars! Which one brings the dough?

Another group that has been totally overheated lately are the retailers. There is just too many of them! Too much competition, too much omni-channel and too many discounters in Cramer's opinion.

The competition has become fierce among Target, Amazon, J.C. Penney, Costco and most others. And because there are so many options to choose from, earnings are struggling.

"Retail is just a tough group, and I think over time it's only going to get tougher as customers become more acquainted with mobile websites and lose loyalties that were etched in stone," he said.


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

Keurig Green Mountain: "This new cold product, apparently they had some issues. If you want to play Green Mountain through Coca-Cola I would bless that. By the way let me just be very clear, I think Monster Beverage is a buy, buy, buy and that's the one I want to own."

Halozyme Therapeutics: "Of that certain group, it's going to be Halozyme and it's going to be Bluebird."

Read MoreLightning Round: The earnings on this are too suspect

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