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Cramer: Forthcoming catalysts not factored into stocks

(Click for video linked to a searchable transcript of this Mad Money segment)

Because the market is hyper-focused on interest rates, Fed tapering and Syria, Cramer thinks the Street has completely overlooked significant catalysts that are forthcoming.

Just as weakness in Europe and China dragged down the S&P 500 back in 2011, Cramer believes forthcoming strength is about to drive it higher in 2013.

Now, make no mistake, although there are China and EU skeptics in the market Cramer is not among them. He is convinced both economies are getting stronger.

"We're just getting fabulous news at every turn: for example we've gotten a robust PMI from China, we've seen incredible gains in the Baltic Dry Freight Index, and we've gotten a fantastic Chinese export number, 7.2% growth versus the 6% people expected."

Looking at Europe Cramer sees similar positives.

"Hardly a day goes by when we don't see some electric number out of Europe, whether it's a better than expected European PMI, or improving confidence numbers."

All told, Cramer thinks the turn overseas is undeniable.

And for investors, here's the important part -- he doesn't think China and Europe are properly factored into the market. "Right now Europe and China aren't the focus for most investors," he said. Instead it's tapering and raising rates.

Therefore Cramer believes US stocks that are likely beneficiaries of a recovery in Europe and China are too cheap.

Adam Jeffery | CNBC

Following are the stocks that Jim Cramer has on his radar.

Ford: Cramer thinks Ford could rally to at least $18. "Europe had been a problem for the company," he said. Therefore a turn could drive earnings. And Cramer sees another tailwind for Ford. "From what I can tell the American car market is the strongest it's been in in years."

Eaton: "Eaton has been in the doghouse since it guided down after the last quarter, with Europe being one of the chief headwinds to their performance. What happens if it turns into a tailwind with a genuine rebound in business?" Cramer thinks the answer is gains.

Caterpillar: "A turn in China, where Caterpillar was dramatically over-inventoried, could be huge. Any sign of just one month worth of better orders should take this Dow stock at least ten percent higher," Cramer said. "Perhaps more. "

Cummins: "We know Cummins is producing eco-friendly truck engines, both diesel and natural gas. The U.S. market may not be so hot, but Cummins is really reliant on China for the upside. I suspect they get it."

Joy Global: "China opens a new coal-fired power plant every ten days. They need equipment from Joy Global to get coal out of the ground."

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In addition to the stocks listed above, Cramer also said that General Motors, GE, Nike and Yum also stand to benefit simply because all these companies do significant business with China.

All told, Cramer sees every reason for these stocks -- and by proxy the entire S&P 500 -- to rally further.

"As far as I can see, the socialists in Europe and the Communists in China are bailing out the capitalists in the U.S. It couldn't come at a better time.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

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