Given the market's strong run last month, Cramer knows it is hard to find a large-cap stock that is still cheap on an earnings basis. There was one company with big potential that stood out to him that is trading at absurdly low levels right now — Johnson Controls.
Johnson Controls has three divisions. One that makes heating ventilation and air conditioners, a power solutions business that supplies lead acid batteries, and an auto parts business.
In January, Johnson Controls announced it would buy the rump of Tyco, a provider of security equipment, fire protection gear and various safety products in a $16.5 billion deal. It was a tax inversion transaction, as Tyco is based in Ireland. The deal is expected to close in a little less than a month.
"With the Tyco merger rapidly approaching, I think this is a good time to buy some Johnson Controls," Cramer said.
DexCom is the company that makes glucose monitoring systems for people with type-1 diabetes. Its technology transformed the way blood sugar levels were checked when it introduced a sensor that can stick on the skin, rather than pricking a finger.
And while it does have competition from companies like Medtronic, DexCom's management has been adamant that it is not losing market share. On Tuesday, the company reported a wider than expected quarterly loss, even as its revenue was higher than expected, and the stock fell.
Two weeks ago, an FDA panel voted in favor of approving DexCom's monitoring system for non-adjunctive use, which means Medicare and Medicaid could start covering its product. Cramer spoke with DexCom's President and CEO Kevin Sayer, who outlined the significance of the panel decision.
"It could be very big. This is really the first medical device ever approved for making insulin dosing decisions," Sayer said.
In the Lightning Round, Cramer gave his take on a few caller favorite stocks:
LendingClub Corp: "Way too much risk. Come on my friend, I know they're doing that reorganization and stuff, but I said I'm not going to touch that one. Put together a couple of good quarters and maybe I'll even think about it."
W.P. Carey: "On real estate investment trusts, we're recommending Ventas and Federal Realty. That it, we're not going further."