Everything You Want In A Growth Stock

On Monday, Cramer recommended buying shares of Lululemon, which he called a "red-hot stock."

The Vancouver, Canada-based retailer sells yoga-inspired athletic clothing and is notorious for its "exorbitantly priced" yoga pants at more than $100 a pair, Cramer said. Its stock has been skyrocketing lately and made a new high in trading Monday. Selling for 42 times earnings, some may think LULU is too expensive. Cramer, however, thinks Lululemon has lots of growth ahead.

"You have to consider where Lululemon is going," Cramer explained. "Not where it is at the moment."

Lululemon has a long-term growth rate of 29 percent, Cramer noted. The company currently operates roughly 130 stores in the U.S., Canada and Australia, but plans to expand to 350 stores by opening up to 25 new locations a year. Existing stores are highly productive and right now, Lululemon currently gets most of its sales from retail. However, Cramer thinks stores like Nordstrom or Saks would sell its products, too.

"Lululemon has everything we want in a growth stock and for those of you who think it's too expensive, get ready for it to become more expensive still as LULU's market opportunity expands from women who do yoga to all women," Cramer said. "I would be a buyer and a definitely would not bet against this one."

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