CNBC's Jim Cramer deciphered the difference between objective and subjective stock valuations and how they are impacting the market. The "Mad Money" host broke down the stock of Ollie's Bargain Outlet and insists that investors add shares to their portfolios.

Stock valuations that are objective tend to satisfy traditional investors, yet Wall Street is running a different playbook at the moment, CNBC's said Thursday.

"The bottom line is that amazingly and, yes, counterintuitively, buy high and sell higher is working here. Buy high and not selling is the best," the "Mad Money" host said. "It's a virtuous circle, with subjective assessments of the coronavirus fueling these subjective growth stock valuations. I bet it keeps going until the outbreak runs its course."

His comments come after the major stock averages all declined, with the dropping 128 points to 29,423.31, as investors digested a dramatic spike in new coronavirus cases in China. The market had risen in prior days as more positive data related to the outbreak came out.

"That's what this market has devolved into: a two-track affair that's bounded by highly subjective judgments about earnings, and it's all colored by an epidemic in China that's going global," Cramer said.

Cramer called the stock of a bargain buy in a stock market that is near its highs.

The former hedge-fund manager earlier this week was hesitant to recommend the stock, given the passing of founder and CEO Mark Butler in December. Now he's bullish about the off-price retail chain.

"If you want to go bargain hunting in this market, I urge you to look no further than Ollie's Bargain Outlet Holdings," the host said. "Now that I've done my homework, though, I think [Butler's] successor is up for the challenge and the stock has become ridiculously cheap here and deserves to be bought."

In Cramer's lightning round, the "Mad Money" host took questions and delivered answers from callers on their favorite stock picks of the day.

: "Now, understand that I've gotten this one wrong before ... but I still think there is too much competition in the align-technology business."

: "This is RV related. I have felt that the RV business has gotten too cyclical, so I want to stay away, especially after this nice run."