Cramer Remix: Apple is the greatest consumer products story ever

  • CNBC's Jim Cramer explains why the tech giant could have staying power as a consumer product story.
  • The "Mad Money" host also hears from the CEOs of Cypress Semiconductor and Pool Corp.
  • In the lightning round, Cramer recommends holding on to the soaring stock of Idexx Laboratories.

With Wall Street awaiting the results of Federal Reserve's two-day policymaking meeting, CNBC's Jim Cramer wanted investors to keep a key trend in mind.

"We keep forgetting that the economy is really strong," the "Mad Money" host said on Tuesday as stocks lifted. "Let's remember that employment is on fire and we just had 4 percent GDP growth last quarter. Hardly anyone saw that number coming."

"You overlook the strong economy at your own peril," Cramer warned, explaining that as wages rise and consumers find more money in their pockets, stimulus from consumer spending is not far behind.

To prove why these trends are so important — and potentially profitable for investors — he turned to the retail sector and another high-profile juggernaut that reported after Tuesday's close: Apple.

"If you really want to pick the greatest consumer products spend story ever and are willing to tolerate some worldwide implications, then of course buy the stock of Apple," he said. "Sorry, I couldn't resist pushing my new consumer products narrative. And, of course, you should own Apple."

Apple's third-quarter earnings report topped analyst estimates, with 40 percent year-over-year growth in earnings per share and 17 percent year-over-year growth in revenue. The iPhone maker's services revenue, a key factor of Cramer's consumer products thesis, grew 31 percent since last year.

And if you still don't own Apple, Cramer had one thing to say: "Get with the program."

For the retail stocks Cramer's blessing right now, click here.

Cramer talks Apple's valuation

Apple CEO Tim Cook speaks during a product launch event at Apple headquarters in Cupertino, California on October 27, 2016.
Josh Edelson | AFP | Getty Images
Apple CEO Tim Cook speaks during a product launch event at Apple headquarters in Cupertino, California on October 27, 2016.

If Apple was valued as Cramer sees it — "the greatest consumer products company in history" — the stock's price target would be $300 a share, the "Mad Money" host said Tuesday.

Speaking after Apple reported a third-quarter earnings beat driven by continued strength in its service stream revenue, which grew 31 percent since last year, Cramer again made the case for the company's budding razor-razorblade model.

"Given the rapid growth of that service stream, this company deserves to sell at a price-to-earnings ratio that is more like a consumer packaged goods company," he said as Apple's stock popped more than 3 percent in after-hours trading.

Cramer lamented the fact that Apple is valued like a "sturdy, cyclical industrial" at just over 17 times next year's earnings estimates. Instead, he said, it should be on par with top consumer goods stocks, which tend to trade at mid-20s multiples.

For more on Cramer's instant take on Apple's earnings beat, click here.

Off the charts: Could gold be nearing a bottom?

Gold bars on display in Tokyo on September 27, 2010.
Yoshikazu Tsuno | AFP | Getty Images
Gold bars on display in Tokyo on September 27, 2010.

When investors are worried about rising raw costs and inflation, CNBC's Jim Cramer typically suggests they buy a popular hedge against those economic pressures: gold.

But lately, the price of gold has been in a downtrend, sinking roughly 11 percent since its April peak despite concerns about the effects of new trade policies on the U.S. economy.

So, to make sense of the move, the "Mad Money" host turned to technician Carley Garner, the co-founder of DeCarley Trading and author of "Higher Probability Commodity Trading."

And to Garner, the situation isn't as dire as it seems.

For her full analysis, click here.

Cypress Semiconductor CEO on trade tensions

As the CEO of a company at the center of the trade debate around intellectual property, Cypress Semiconductor chief Hassane El-Khoury can't ignore the impact tariffs have on his chipmaker, he told CNBC on Tuesday.

"I personally am a big believer in free trade," the president and CEO told Cramer in an interview. "This really allows companies to innovate, companies to compete on a very equal floor. However, with IP, with innovation, you need to have IP protection."

But IP protection comes at a price. For Cypress Semiconductor, which boasts high-profile clients like Amazon, Sonos and Nintendo, that price is 1.5 percent of its revenue.

"It's not material. Obviously, we're always monitoring the situation," he told Cramer. "We're heavily involved with the respective parties. We're working on ways to minimize even that little 1.5 percent that we have. That's direct impact for Cypress. Obviously, we're all looking at what this would do on a macro level, but for Cypress directly, I'm not very concerned about it."

To watch El-Khoury's full interview and hear more about Cypress' core business, click here.

Outgoing Pool Corp. CEO on company's organic growth

As Pool Corp.'s outgoing President and CEO Manny Perez de la Mesa prepares to end his 20-year tenure at the world's largest distributor of pool supplies, he told CNBC that he feels secure leaving his company behind.

"We have a great team in place, great leadership, we're in a great industry and as time goes on, I think that I should unleash them to the future and continue our track record of growth," he told Cramer in an exclusive interview on Tuesday.

Because the pool giant's revenues come from an installed base of more than eight million pools in the United States and "another light number" of pools abroad, de la Mesa was bullish on the company's ability to continue to capture market share organically and deliver shareholder returns.

Notin the "evidence of the strength of our model, the strength of our business, the strength of our industry and the great future that we have ahead of us," the CEO said a key prospect was to "increase our effectiveness to bring more to the bottom line."

To watch de la Mesa's full interview, click here.

Lightning round: The health of IDXX

In Cramer's lightning round, he flew through his take on callers' favorite stocks:

Idexx Laboratories: "You've got to hold on. This stock is a total horse. It's one of the best-acting stocks. I'd put it right up there, really, with Illumina, which is another great one – these kind of testing companies for anything genetic, anything biological, even if it is dogs and cats. Idexx, go buy some more. Pay off your basis, but do it."

Western Gas Partners LP: "I think that these stocks are now undervalued. The one I've been looking at is DCP Midstream. That yields 7 percent and they just bumped the dividend. So I think you're in the right spot and I'm willing to go with you."

Disclosure: Cramer's charitable trust owns shares of Apple and Amazon.

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram - Vine

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com