One of the tricks that Jim Cramer has learned over the years is that sometimes just taking a quick look at the goods that consumers are buying is the simplest way to make money in the stock market. For instance, Cramer saw that the stock of Regeneron has skyrocketed to $500 from $5, and thinks it has plenty more room to run.
That is why Cramer decided to take a look at the clues sprinkled all over the market that can help investors come up with solid investing ideas.
To find those clues, the "Mad Money" host revealed a methodology that he used to follow back when he was a hedge fund manager and needed to come up with creative new investments off the beaten path yet linked to major trends in the economy.
Cramer has had his eye on retail recently as a big trend, right in the epicenter of reporting. Most major retailers are reporting earnings right now, and Cramer wanted to find a way to leverage that.
"During this period I try to find what trends stand out as investible so I can pick stocks within those trends, and what companies are doing well versus the performance of their stocks," Cramer added.
The one retail stock that was the shining star was Home Depot. It crushed the quarter with better than expected earnings. Yet the stock has been hit hard as investors started taking profits. This got Cramer thinking—what major theme is driving this?
"I then hit up Stanley Black & Decker and I had an ah-ha moment," Cramer said.
This is one stock that dominates the tool business and has major European exposure, which is a good thing now that Europe is turning. Additionally on Tuesday, we learned that housing starts are at a seven-year high, and Home Depot confirmed that household formation is beginning to grow again.
He recommended that investors buy Stanley Black & Decker if it goes down on Wednesday, preferably before Lowe's conference call where it will spill the beans that tools are doing so well.
After the biotechs were slammed hard two months ago, many investors were freaked out and backed away from the group. However there is one company that has been one of the best performing stocks and has been talked about the least—which is precisely why Cramer wanted to take a closer look.
United Therapeutics was founded by Dr. Martine Rothblatt, as a way to help to find a cure for pulmonary hypertension, a disease that ails her daughter. The company currently has four drugs on the market and an amazing pipeline that includes treatments for cardiopulmonary diseases, monoclonal antibody therapies that fight cancer, and glycobiology-based antiviral drugs.
In 2013 Rothblatt was also ranked among the highest paid female executives in the United States, with a compensation of $38.2 million. According to her interview with Fortune she felt awkward from the attention received as being the highest paid female CEO, because she has only been a female for half of her life. In 1994 she underwent sex-reassignment surgery.
United Therapeutics reported in late April, and while it reported a whopping 41-cent earnings beat from a $2.14 basis, its revenues were lower than expected which caused the stock to drop 12.5 percent in the following two sessions. Since then, it has started to make a comeback.
Could United run even higher? To find out, Cramer spoke with United Therapeutics' Rothblatt, who serves as chairwoman, founder and CEO.
The CEO shared that when her youngest daughter developed pulmonary hypertension, there were no medicines approved for it from the FDA. Her daughter was given a life expectancy of only three to five years.
"I was head of Sirius XM satellite. I started that, and all my career I've been in satellite communications. But when your youngest daughter gets this kind of a diagnosis I was just going to stop everything I did and save her," Rothblatt said.
Another stock that Cramer has been watching lately, is Twitter. "I hate to say it, but too many people like the stock of Twitter. It has too many fans, too many investors betting on big things happening in a very short time," Cramer said.
Now to clarify, Cramer does like Twitter because there are so many things that could go right for it. But all of those things are in the long-term. The problem here is with the short-term.
In the short term the problem is with the stock's valuation, both on an earnings basis and a takeover business.
As far as Cramer is concerned, this stock is stuck in no man's land.
Why? Because it's too expensive to be acquired right now. All of the natural buyers such as Facebook, Google or Apple are sensitive about how their stocks will be impacted if they made a big acquisition on a company like Twitter that does not have aggressive growth.
"The only other way a deal occurs here is if Twitter's stock plummets down to levels where these potential acquirers would find it attractive," Cramer said.
Airline stocks have also hit major turbulence recently after the price of oil started rebounding a few months ago, which has caused many investors to back away from the group. However, Cramer refuses to back down and won't give up on airlines.
American Airlines has been a long-time favorite of Cramer's ever since its merger with U.S. Airways in 2013. Prior to the massive consolidations in this space, Cramer always considered airline stocks too dangerous to own because of the large quantity of buyers and tough competition.
However when the American-U.S. Airways deal went through, Cramer reconsidered his position on airlines because the long line of mergers proved that these companies could finally turn a profit.
While American did report a solid quarter in April, its stock has been slammed thanks to rising price of oil and investor rotation out of domestic stocks. Yet it trades at just five times this year's earnings estimates, which is absurdly cheap.
Can American Airlines skyrocket once again? To find out, Cramer sat down with American Airlines Group CEO Doug Parker.
The CEO explained that the airline industry has changed dramatically in the past few years and this isn't the old days. In fact, he is so confident that this change has taken place that he made the decision to be compensated in American Airlines stock.
Parker outlined there were two reasons for this decision: "One as a CEO I think that I should be compensated in the same currency that you are compensated in, which is our stock. Second thing is that I think it is a great indication of how the industry has changed," he said.
Last week when Cramer reviewed GoDaddy's IPO, he shared with Cramerica that he was worried that this company had some serious competition. One of those competitors is Wix.Com, an Israeli website development company that specializes in helping individuals and small businesses build their own website.
Wix.com has a free platform that allows users to easily design their own website, and makes money once its users decide to pay for a premium subscription service.
The stock has been wild since it came public in November of 2013, however Cramer pointed out that lately it has been on fire. Can it continue to run?
To find out, Cramer spoke with Wix.Com chairman, co-founder and CEO Avishai Abrahami.
"You can really take your dream, your vision and design it. We give you a lot of options to create great visuals, a fantastic way to express yourself and take your vision and put it online," Abrahami said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
Lazard Ltd: "I think Lazard is good...Lazard has been a big winner, and I think it's going to stay a big winner."
LendingClub Corporation: "I met with the people from Affirm recently, and I think Affirm may have a better model than LendingClub. I think LendingClub has come down enough that you can speculate on it, but I like these other guys."