Investors who think they've missed the market's big move might have a point, but they could also be underestimating the upside ahead, CNBC's Jim Cramer argued on Monday.
The "Mad Money" host offered an array of reasons for the upside potential: the increased potential for a successful tax overhaul, the broad-based lack of consumer enthusiasm about stocks, and the merger activity in the once-struggling food space.
But not all the reasons are so macroeconomic. Some of the biggest moves in Monday's rally came straight from Wall Street, Cramer said.
"We're back in a world where analyst recommendations can produce gigantic moves," Cramer said. "Witness how Twitter skyrocketed up 11 percent today just because of a J.P. Morgan upgrade this very morning. Wow. That's a little like the 1990s."
Marking momentum in Conagra Brands
In light of Campbell Soup's purchase of snack brand Snyder's-Lance and Hershey's deal to buy the parent company of SkinnyPop, Cramer wanted to revisit the food space.
The unexpected strength is "not just [in] the pantry," he said. "This miraculous supermarket strength extends even to other parts of the frozen food aisle, which seemed like a wasteland not that long ago. In particular, Conagra [Brands] suddenly seems to be very much on the mend and I think that this stock could have a lot more room to run."
Shares of Conagra, the company behind Chef Boyardee, Hebrew National, Reddi-Whip and Orville Redenbacher, had trouble picking up steam for most of 2017.
But now, Conagra has become one of the sector's best stocks, and Cramer said the food giant could have a takeover of its own in the midst.
Enough industrials?
As Cramer watched the averages jump to new intraday highs on Monday, he wondered about the welfare of one very strong sector: the cyclicals.
"There's a shortage of good cyclical stocks," the "Mad Money" host said. "I never thought I'd say that because we've had such a prolonged period of slow growth where most of the economically sensitive names seemed to fall by the wayside. But now it's crystal clear: we've got a stock shortage in the sector, plain and simple."
Cramer pointed to how strong construction plays like Caterpillar have gotten. Their strength is due to the fact that there aren't enough good public companies in that space to own, he said.
Ollie's Bargain Outlet CEO: Strong buying environment
The holidays tend to be a bright moment for retailers, with major store chains reining in their inventories this year to improve profitability.
At the same time, the buying environment for discount retailers like Ollie's Bargain Outlet Holdings has "never been better," Ollie's President, Chairman and CEO Mark Butler told CNBC.
"There's been no shortage [of merchandise]," he told Cramer. "I've been with you several times over the last couple of years, and the buying environment of the close-out industry, it's never been stronger. It's never been better. We're seeing bigger, better, brighter, broader bargains, and we're selling name brands at drastically reduced prices, direct to the consumer."
Butler said that an ever-changing selection of goods is the main draw for Ollie's loyalists. People usually like bargain-hunting, which is how the off-price chain has amassed 8.2 million members for its loyalty program, Ollie's Army.
"The Army continues to grow faster than our sales, so it's really, really strong," the CEO told Cramer.
United Rentals CEO on tax overhaul effects
The whole U.S. economy stands to benefit from the GOP-driven tax overhaul, United Rentals President and CEO Mike Kneeland told Cramer on Monday.
"I think it will [spur great economic growth]. I do because I think companies will invest," Kneeland said. "You could do share repurchases, capital allocation, acquisitions. Aside from that, we're also, with our board and management, investing in other areas of our business to bring new verticals, new types of products."
The chief of the equipment rental company said that the tax plan was "all positive" and would help United Rentals with its cash flow, earnings and returns.
Most of all, it adds to the already-positive 2018 outlook for industrials like his, with potential infrastructure and tax legislation being fundamentally accretive, Kneeland said.
"The fundamentals of our industry today [are] very positive, whether it be the Dodge Momentum Index, which was a 13 percent improvement, or if you take a look at the construction backlog, which was at an all-time high," the CEO said. "I can tell you 2018 looks very positive. I can't go much beyond that, but what we see in the future looks pretty good."
Lightning Round: Stay with SWIR
In Cramer's lightning round, he rattled off his take on some callers' favorite stocks:
Sierra Wireless, Inc.: "I don't really think there's a reason to get rid of it. I think it's a telecommunications company. A lot of those things have been on hold lately because of orders. I don't want you to get rid of it. I think you hold on."
Energy Transfer Partners LP: "That's not a great stock. It's just not. And it's run by [CEO] Kelcy Warren, who's not that good. May I suggest that if you want to be in that LP business, you buy Magellan Midstream Partners? I'm recommending that to club members and it is just starting to move higher [at] $69 bucks. I think it goes to $74."
Disclosure: Cramer's charitable trust owns shares of Magellan Midstream Partners.
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