Stocks pushed higher for a second consecutive session on Monday as investors were encouraged by the early atmosphere surrounding talks to tackle the U.S.'s "fiscal cliff," leading Jim Cramer to outline the stocks he thinks could be helped by such a resolution.
"How about the home improvement plays," Cramer said. "I think that retail's the biggest winner if we hammer out a phased in group of spending cuts and tax increases and the retailers that cater to making your home worth more are the players that will get the biggest share of those spare retail dollars."
(Read More: What Is the 'Fiscal Cliff'?)
Shares of Lowe's, the world's No. 2 home improvement chain, jumped 6.2 percent to $33.96 to hit a 52-week high after the company reported higher-than-expected quarterly profit and raised its full-year sales forecast. To Cramer, it wasn't just earnings that helped Lowe's, though. He thinks talks of a "fiscal cliff" deal helped its stock, too.
"The cycle is just beginning where spending on your home is actually growing as a percentage of overall spending," Cramer said. "If we go over the "fiscal cliff," that nascent trend would be snuffed by dramatic tax increases."
(Read More: Who Gets Hurt the Most If US Goes Off the 'Fiscal Cliff'.)
In turn, Cramer not only likes home improvement retailers Lowe's and Home Depot on a potential "fiscal cliff" deal, but companies that make home improvement- related products, too. He likes Sherwin-Williams, Stanley Black & Decker andWhirlpool, for example, as well as USG and Briggs & Stratton.
(Related: Trading the 'Fiscal Cliff': What Now?)
If the "fiscal cliff" is bridged, Cramer also likes "super high discretionary plays," such as Harley-Davidson, Polaris Industries, Dick's Sporting Goods and Brunswick .
"You give rich people more money, they will buy municipal bonds first, boats second, and only then create the jobs that they are often lionized for," Cramer said.
In the retail space, Cramer likes Nordstrom and PetSmart on a "fiscal cliff" resolution. After all, both companies recently reported strong quarterly results, but were not rewarded with higher valuations because the market was nervous about the fiscal crunch.
Speaking of retail, Cramer said high-end retail suppliers Ralph Lauren and PVH could be helped by a "fiscal cliff" deal.
"PVH is up more than 50 percent for the year. You would normally want to hold on to this stock because 2013 looks terrific for them," Cramer said. "But in a situation where you had no idea what the capital gains tax rates will be next year, you would want to nail down the gain, because why risk that they go up dramatically?"
If higher taxes are phased in slowly instead of going immediately higher, as the "fiscal cliff" calls for, then Cramer recommends considering stocks with huge gains that have been hammered since the election.
Apple, for example, spiked more than 7 percent on just "whispers of a deal in Washington," Cramer said. He also likes homebuilders Toll Brothers and Standard Pacific .
(Related: 'Insane' Apple Selloff Hitting Bottom: Pro.)
Cramer likes Amazon.com, too, but only recommends buying through deep-in-the-money call options out several months.
"I am convinced that this is going to be a monster online retailing year," he said.
Master limited partnerships are likely beneficiaries of a gradual tax increase, Cramer said. He likes Kinder Morgan and Enterprise Products Partners, as well as Linn .
In the end, Cramer said that while not all stocks will win on a "fiscal cliff" compromise, the market overall will likely be helped by such a deal.
When this story was published, Cramer's charitable trust owned Apple.
—Reuters contributed to this report
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