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Cramer Remix: What to buy after the election

Jim Cramer says stocks didn't rally on Monday because of Hillary Clinton. The market rallied simply because it loves certainty.

"I long for the market to be, well, the market again, where we value companies on how well they are doing, not as a part of a vast basket that goes up or down depending on how certain we are about the results of the election," the "Mad Money" host said.

But if Clinton does declare victory, then Cramer expects the market to go back to normal the day after the election. That means Cramer's got his eye on the companies with the best earnings that can take investors through year end.

The banks were the best winners of earnings season, as they generated bigger profits than anyone expected. JPMorgan, Bank of America, Citigroup, Goldman Sachs and KeyCorp all blew Cramer away.

Of the soft financials, Cramer was most impressed with Visa, MasterCard and American Express.

The second group that performed well was the social, mobile and cloud stocks like Alphabet, Facebook, Amazon and Accenture.

Transports were also a puzzling winner, as most railroads and airlines didn't make the numbers, but will likely do much better next year. Cramer liked United Continental and Norfolk Southern as comeback options.

Donald Trump reacts during a campaign event in Selma, North Carolina, November 3, 2016.
Carlo Allegri | Reuters
Donald Trump reacts during a campaign event in Selma, North Carolina, November 3, 2016.

Even though polls for the election currently favor a victory for Hillary Clinton on Tuesday, Cramer has seen the polls wrong before. That is why he prepared investors for what to expect in the event that Donald Trump wins the presidential race.

The one stance that stood out to Cramer from Trump's platform was his stance on Mexico. If he wins, Trump plans to build a wall along the border and attempt to renegotiate the North American Free Trade Agreement (NAFTA).

Cracking down on Mexican exports would likely boost American manufacturing jobs, but it could also make products more expensive for U.S. consumers.

This means a company like Cemex — a Mexican company that is one of the world's largest manufacturers of cement and concrete — could be hurt substantially under a Trump presidency.

Another stock that could be impacted negatively by a Trump regime is Kansas City Southern, the main railroad that connects Mexico to the U.S. A large wall could hinder the very transportation routes that Kansas City Southern relies on.

As stocks bounced back on Monday, Cramer watched asinvestors crowded back into the trusted FANG stocks. FANG stands for Cramer's acronym for the growth stocks leading the market: Facebook, Amazon, Netflix and Google, now Alphabet.

"In my 35 years of picking stocks, I have always found this phenomenon to be the case: the favorite growth stocks stay favorites until they stop growing," Cramer said.

Two of the four FANG names issued guidance that investors found disappointing when they reported. One surprised Wall Street with decent earnings and OK revenue growth, but no forecast boost. The final name simply did what was expected.

Yet, all four were the first stocks investors reached for on Monday.

NYSE Trader on the floor
Andrew Burton | Getty Images

XPO Logistics delivered a strong quarter last week for the second time in a row this year. Cramer suspected that its latest acquisitions could be paying off for the company, and Wall Street is finally taking notice to its stock.

XPO is a provider of transportation and logistics services. Just over a year ago, it bought trucking firm Con-way for $3 billion just after it acquired European transportation play Norbert Dentressangle, for $3.5 billion in 2015.

Cramer spoke with XPO Logistics' CEO Brad Jacobs on Monday, who confirmed that the plan for the company all along has been to become the brokerage and delivery company that customers have been waiting for.

"The plan has been to stake out positions in the fastest growing parts of transportation and logistics, and be either No. 1 or close to No. 1," Jacobs said.

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

First Solar: "On that conference call, you heard that they pushed back the billion dollar's worth of business. They pushed back a billion dollars! There was no way you could get behind that stock. Absolutely not! That was a very bad call."

Hortonworks: "I think they missed the quarter bad. I think people don't really care for them. But you know what? It's down so low I don't think it's such a bad buy. I would speculate on it."