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Cramer wants you to avoid this at all costs

Cramer: Avoid this at all costs

As most Cramericans know, Jim Cramer believes in following a stock with a strong CEO. After all, if the head honcho isn't a winner, than the stock might as well be a loser, too. However, with the price of oil tanking yet again, he is avoiding those slippery stocks at all costs.

"I want to reveal a list of some of my most competitive CEOs, people you may not realize it but have the gloves off when it comes to their rivals," said the "Mad Money" host.

Cramer was inspired when he interviewed T-Mobile's John Legere on CNBC's "Squawk on the Street. " This CEO has managed to turn the company around into an innovative powerhouse that blew earnings away with the announcement that it added 2.1 million subscribers, bringing the total to 8.3 million additions for 2014.

"You know how he has done it? By being himself, the single most in-your-face CEO in the country. And I love it. Legere's a bomb thrower. He's a guerrilla fighter. He doesn't look like a CEO. He dresses like Belichick and he needs a haircut," added Cramer.

Other top fighting dogs on Cramer's list, include John Stumpf at Wells Fargo, Howard Schultz of Starbucks, Oracle's Larry Ellison and John Chambers of Cisco.

Read More Cramer: Competitive CEOs that 'show you the money'


As oil inventories rise and crude prices dropped yet again, Cramer thinks it is worth pointing out that oil has become a major battleground, and most of Wall Street is clueless.

"There's a huge disparity in what we call sell-side forecasts right now, perhaps the largest lack of consensus I have ever seen," said the "Mad Money " host on Thursday.

Cramer speculated that the discrepancies are partially due to oil analysts at large firms chasing oil as it went down, and reducing targets dramatically once the price dropped.

The reason why the significant range of estimates is important is because commodity projections are the most important key data point used when energy analysts issue ratings and estimates. Money managers use this information to conduct business, and it can make a big difference.

Case in point: The same brokerage houses can't even figure out if oil has bottomed or if it is going to make a v-shaped or u-shaped recovery. Eight of the biggest firms have radically different opinions on the topic.

Read More Cramer: Oil is a battleground—Wall St is clueless

So while Cramer is staying away from the battleground oil stocks, he is all over the restaurant stocks like white on rice. Restaurants are one of the biggest beneficiaries to cheaper oil prices, as the extra disposable income in consumer pockets is spent predominantly on activities like eating out.

This was evidenced by the wealth of positive earnings reports released recently from companies such as Denny's, Bloomin' Brands and even the long-time dog Potbelly.

"I'm not saying Potbelly is a buy—far from it—but man, talk about a rising tide lifting all ships, even dinghies with holes in them," said the "Mad Money" host.

However, Cramer's No. 1 favorite restaurant stock is Jack in the Box. This company owns both the Jack in the Box burger chain and Qdoba Mexican Grill. The stock keeps climbing higher and higher, as Cramer described it as the "penthouse of stocks." The company is chock-full of initiatives, it doesn't need to rely on the cheap price of gasoline.

Ultimately when a trend is happening in the market, don't fight it—just go with it. Restaurant stocks are rolling in the dough due to a stronger consumer and cheap gasoline, and Cramer is betting on JACK as the winner.

Walmart customers push carts past reusable shopping bags in Los Angeles.
Patrick T. Fallon | Bloomberg | Getty Images

One stock on Cramer's radar that is still cheap in a world of overvaluation is Perrigo. This company is the largest maker of private label over-the-counter drugs, with a generic drug business that is growing and a small proprietary drug business.

While consumers have more money in their pocket to burn with cheap oil prices, Cramer still thinks the scars of the great recession are there and they will buy private label store brands.

Though the stock has pulled back recently, Cramer still thinks it could yield long-term gains once it completes its recent acquisition of Omega Pharma. To find out what could be in store for the future, he sat down with Perrigo Company CEO Joe Papa.

"We will go from being in about six countries, commercially, to about 38 countries. We think that is the real exciting part for us," said Papa.

Another stock that stirred the pot on Thursday was Wal-Mart when it announced it would increase the wages of its 500,000 employees by approximately a dollar an hour, and ultimately take a hit on next year's earnings to do so. And while Cramer thinks this move is awesome, he is also concerned.

"All I can say is hallelujah. This move, a big break with the past, shows that the new CEO Doug McMillon gets it," said the "Mad Money " host.

Yet there is a big problem: Wal-Mart is still paying much less than most other quality retailers. For instance, the average pay at Costco is $21, while the average pay at Wal-Mart next February will be $10 an hour.

"Costco's probably the single-most generous retailer in the country when it comes to benefits, which, as we know can be worth far more than hourly wages in many cases when it comes to keeping the best employees," said Cramer.

Read More Cramer: The one big problem with Wal-Mart's stock

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

CBS Corp.: "If it comes down, you want to buy it back because they are in there buying the stock back with you."

Box Inc.: "I think Box is fine, it's long term and I'm not looking for them to shoot the lights out in the first quarter. I like the stock long term."

Read More Lightning Round: This franchise is dynamite