Matters. Yeah. Value of all things, its playing a role. I mean a longterm value. And its springing up everywhere, unlike the real spring which is nowhere to be found. Thats why the dow climbed 91 points. And the nasdaq, which last i looked doesnt add a lot of value. Therefore, advanced only. 19 . Look, i know it sounds like im being facetious here. Doesnt the stock market always care about value . Honest, simple answer is no. Plenty of times the predominant investors, the ones that matter because they move stocks only care about Growth Stocks. At those moments, value gets ignored because value doesnt move unless management does something drastic like a breakup, spinoff. Growth rolls higher as the managers keep reaching and reaching, paying ever higher prices. Thats the kind of market weve had for a very long time. But over the last week, theres been a remarkable transformation. The aggressive buyers are now the ones seeking value if the economy gets better, right . And theyre taking no prisoners as they bid up the newfound favorite stocks as if theyre Growth Stocks. Why dont we go over a couple of these value names so you can see what i mean. First, theres caterpillar, one of the bestbehaving stocks in the entire market, up for 2014. Now caterpillars been a chronic underperformer for several years. Mostly because its consistently missed earnings estimates and youve got to slash them. In the meantime, the stock market as a whole has marched higher and become very expensive relative to caterpillar, the big earth mover and engine company. Right now, c. A. T. s trading at about 14 times heavily reduced earnings estimates. Come on, man, thats much cheaper than the s p 500 trading 17. 2 times earnings even though its a highquality company. Until recently, though, that disparity meant nothing. Who cares about value if you can buy a stock like twitter that keeps roaring higher. Why bother with value when chipotles steaming ahead nightly. But now those admittedly expensive stocks and their cohorts are going down. And the growth oriented buyers, theyre reaching for red hot ipos but not paying up for anything. If anything, theyre sell, sell, sell which is why we have to recognize not just things go wrong with caterpillar, but there are also things that can go right. House of pleasure. Consider these positives. First, we have United Rentals on the show not too long ago. We know from the cceo of United Rentals theres a renaissance in optimism about commercial construction. Hey, thats c. A. T. s bread and butter. When he came on not that long ago, i dont think he could have been more optimistic about his business and i questioned him several times. Second, got to consider the feds comments from last week. Didnt the fed tell us that business is Getting Better . And that means what . It means theres going to be a need for more nonresidential construction. Again, right in caterpillars wheel house. Third, weve been hearing a lot of calls about how coal has bottomed out. Something as you recall, michael ward told us right here on the show. Now, look at the action in joy global. Thats the biggest stand alone coal Mining Equipment maker. It rallied 3 today. We know caterpillar is joys largest competitor. Means big numbers for c. A. T. Fourth and finally, all over the street today, we heard about a revival in trucking for the first time in ages. Several firms upgraded truck makers. Caterpillar makes the kind of edges that clearly benefit from any kind of rebound in the kind of businesses that require more trucking. So the stock runs with the idea that even if c. A. T. Screws it up, how much more can it fall . After all, reported a hideous number last time. Lots of people are short it. What if it reports a good quarter . The stock would rocket much higher than it is now. Want another example . How about this one . Johnson johnson. Hey, thats my favorite large cap pharmaceutical name. The company with the highest growth rate of all the major pharmaceuticals, yet it has done nothing, nada at all since it reported a good quarter but gave lukewarm guidance. Since then, j j has languished in the wilderness. Its actually trading at a discount to the average stock on the s p 500. Remember, thats how we grade stocks, okay. Value buyers know that disparity cant last, this is the Fastest Growing drug company with the Balance Sheet bigger than any company in the united states. And the best management in ceo who has talked openly about shaking the company up so it only has top tier divisions, get rid of the draws. Yet it trades at a discount to the rest of the market . Thats preposterous. But as the money has poured out of the speculative biotechs in the last few days, its flowed back to j j. Now theres ibm, despite a lot of heat saying cramer, you hated ibm yesterday. No, i didnt. I praised it yesterday. The stocks ramping like i havent seen in years. This isnt a penny stock. Isnt plug power, guys. Anyway, its done without a single whisper of analyst love. Same as caterpillar, got too darn cheap. Yes, ibm missed the last quarter. Missed the quarter before that. But this is a value play that is rapidly transitioning to the cloud. Its true. Its much more of a software than a hardware play now. Yet it sells for only ten times earnings. Not ten times revenues. Ten times earnings. Ten times earnings with a new mainframe cycle coming, ood ls of cash flow, warren be buffett is the biggest backer, the value guys are saying, who cares, come on, its too cheap. How about microsoft . Hit a 52week high today. Its going to spell out new strategy on thursday. Ive been working on this one. I think the companys new ceo will usher in a new era where everything is on the table. A lot of cloud love at microsoft. That could take microsoft trading at 14 times earnings not sales and yielding almost 3 still higher. Why own a Cloud Company thats losing money when you can buy one thats making money even if its growing slower . By the way, this is the same logic that quality produces in apple. Its another stock selling at 12 times earnings, although its a Slower Growth rate, and yes, a much more frustrated shareholder base. Consider schlumberger. This is the finest oil service in the world with the exception of core labs. This company has fantastic technology, great mines running it. Ive seen the stock trade at a premium to the s p for literally all of my trading life. But of late, because of some tepid guidance, it slipped to a discount. That ended today when the company spoke at the howard wheel conference i told you about, gave a tremendous outlook showing we are in a golden age for drilling. Oh, boy they used the fabled strong yearoveryear growth line that really gets stocks going. Hence why schlumberger roared all day from the get go. Finally, heres a totally wild one. You know what hit my value screen today . Are you ready skeedaddy . Celgene. Could go lower, dont hold me to that. It bounced. It is down a staggering 32 points, pretty much in a Straight Line from the high before rebounding to close at 144. 50. Did you know at the levels where it was at one point today celgene is dramatically cheaper on 2016 earnings . And we have estimates. And pfizer or merck . Can you imagine . A rapidly growing company like celgene trading at a discount to two slowgrowing behemoths . But when stocks get hit as hard as celgene has, you get down to real value. And thats why my charitable trusts had to buy similar today. Plenty of reckless ipos, any heightened penny stock, or newly minted software as the Service Companies and Development Stage biotechs that will never develop. But right now, the value managers are stepping up and buying aggressively, although growth managers, theyre licking the wounds. The bottom line, this value move may have some real legs. The stocks theyre taking up are so much cheaper than the average equity that they could rally for days on end without running into valuation parameters or ceilings. Yes, theyve now run a bit. Only a real Scrooge Mcduck would think theyre too expensive. And i very rarely trot out to Scrooge Mcduck. Caller jim, ive gotten used to the idea of selling stocks before the quarterly report. Seems like no matter how good they are, they all get hit. Boy, does that make sense. Caller yeah, best buy got hit last time and i thought id let it come down and it came down even more than i expected. I wondered if you thought it would come back in time. You know, five below came back today, William Sonoma had a remarkable quarter. Best buy, the best thing about it, sir, is that the expectations are so low that i do think they can do the number. Will it move it . I dont know. Five below the expectations were low and its up very dramatically after the bell. So maybe theres a shot here. Can i go to patrick in arizona . Patrick . Hello, jim. Some time ago, ive purchased alcoa and it dropped. Ive been holding on to it to see if it recovered. And now its starting to recover. Should i hold or should i sell . Its a funny stock. What happens is that it reports and then it gives up something. And then if you notice since it went down, it comes back. I think many of the markets that alcoa trades in are Getting Better. I would sell some, maybe a quarter position, get ready to buy it back when there are people who are disappointed who shouldnt be. A transference is occurring. Its all now about value, baby. Mad money will be right back. Coming up, whether or not, Tommy Hilfiger. Will old man winter spoil the shopping this winter season . Or will consumers bundle up with its brands . Find out tonight when cramer talks to the ceo fresh off earnings. And later, strong pulse . Health care legislation was supposed to put many medical stocks in the hospital. But what happened next took wall Street Investors by surprise. Find out which tickers have been moving higher and whether that move could continue. Plus, from laggard to leader . Find out if a huge market selloff could be about to turn around in a big way. All coming up on mad money. Dont miss a second of mad money. Follow jimcramer on twitter. Have a question . Tweet cramer, madtweets. Send jim an email to madmoney cnbc. Com. Or give us a call at 1800743cnbc. Miss something . Head to madmoney. Cnbc. Com. Heres a word you should keep in mind unbiased. Some Brokerage Firms are but way too many arent. Why . Because selling their funds makes them more money. Which makes you wonder. Isnt that a conflict . Search proprietary mutual funds. Yikes then go to e trade. Weve got over 8,000 mutual funds and not one of them has our name on it. Were in the business of finding the right investments for you. E trade. Less for us, more for you. The funds prospectus contains its investment objectives, risks, charges, expenses and other Important Information and should be read and considered carefully before investing. For a current prospectus visit www. Etrade. Com mutualfunds. You want a loan to build you cant do that. Ica . Nobody builds factories in the us anymore. You cant do that. Using american Raw Materials makes no sense. You cant do that. You want to hire workers here in the states . Theyre too expensive, you cant do that. Fortunately we didnt listen to the experts. At weathertech we built american factories, we use american Raw Materials and we hire american workers. Weathertech. Com, proudly made in america. Quality like this. You cant do that. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. We know that retails been pretty darn hit or miss this year with more misses than hits. Some of these stocks have been real houses of pain. Including long time cramer fave pvh. The stock thats down 14 yeartodate. But as we move into spring, the hideously cold weather that kept shoppers at home should be a thing of the past. And at the same time, the border economy seems to be picking up speed. That should be good news for retailers like pvh, which has historically been a wellrun company with one of my bankable ceos from get rich carefully. Pvh reported after the close today and beat wall streets earnings estimates off a penny, even as revenues, some could say, came in light, not clear, rising 25 yearoveryear to 2. 052 billion. Although, its guidance that matters here. And i think the guidance seemed pretty darn positive. Lets check in manny, find out more about the quarter where his companys headed. Manny, welcome back to mad money. Good to see you, sir. Good to see you, jim. Ive got to tell you, manny, i felt, i dont want to draw too many conclusions. I thought this was possibly the turning quarter. Stocks down a lot, i see that now we can Start Talking about earnings per share power. You mentioned the term significant progress in some of the areas that have been hurting. Is that too optimistic . No, i think, look, you mentioned about the weather, some other things,s always concerned about the environment. I think as we look to the second half in particular this year a lot of the initiatives that we put in place last years third and Fourth Quarter continuing into this year, we see a big turn around in the calvin business in the second half of the year. Our order books are very strong both in europe and north america for our jeans business. So were optimistic. Now, obviously, its got to sell through and weve got to prove that out. First and foremost, get it sold in. We feel good about how we set up for third and Fourth Quarter this year. I want to go back because jeans have been a problem. This is new. Youre telling me jeans are better than theyve been. I think we are starting to see some light on the jeans business. In north america, initially, were starting to see some better sell throughs on the mens side. Okay. And our order book really grow in europe and north america for the third and Fourth Quarter as we set up for the fall and Holiday Season next year. This coming year. Southern europe has been a problem, particularly italy. I didnt see anything positive about that part, about italy. Well, i think what were seeing are European Business overall, were seeing has stabilized. Okay. And as were looking out, our Tommy Hilfiger business which is the much bigger part of our European Business, our order book will be up about 5 for holiday, fall and holiday as we go into 2014. So thats a significant turn. Our spring book was up about 1 . Right. So were feeling pretty positive about how that is shaping up. Okay. I liked what you had to say about asia and brazil. How big are they really . Well, our calvin Asia Business is up 500 million business. Operating margins in that business are in the high teens. Thats pretty good. It is a very strong business. Its been strong in 2013. And we dont see any reason why it would slow down in 2014. So that business is comping right now in the low single digits. But i think as we get into a little warmer weather, we should even see some better results. Okay. Thats good. That makes me feel youre not overpromising. Not that you havent, but i know you yourself were abject about the miss, the initial miss, but you said youd fix it. Whats crucial for me, the numbers are difficult to understand. Theres a backout, theres a bass. You got rid of bass. Theres currency backout. To me, when i interpret, i could actually say if you added that back, you could get to 675 i mean, sorry, 765, 795. That would exceed what i find the p consensconsensus to be. Is that a fair judgment . Youve run your own numbers. When i look at it, i think fundamentally what really is going on is were continuing with the acquisition in the first half of the year to make some significant investments in the business. Right. While at the same time feeling that were starting to see the light in the second half of the year based on our order book for calvin, which is up double digits off a relatively small base in europe, but starting to see positive momentum there in jeans, underwear and the initial launch of our sportswear businesses there. Thats the business where we talk about 500 million business in europe for calvin that is at best a break even business for 2013 where our tommy business, which is three times the size is operating at 17 operating margin. So the huge opportunity there to start to see some turn around in that business, i think its going to be second half weighted. And i think the improvement were really looking for is second half weighted for our calvin business. Okay. Now, we have seen a little bit warmer period during this last four weeks. Everybody wants to see i know, i know. We are seeing both the combination of the colder spring and the later easter, which is three weeks later this year, i think were really we really need to see a little bit more of the season. Theres no getting around the fact that the spring north America Business has been soft relative to where everyone is. I cant come here and, you know, give you some positive spin. I think i need to see the april business. Every time the weather warms up, we see a big pop in business. Okay. I think we continue to be optimistic that once the weather breaks, well see pent up demand, and well see an uptick in business. But right now, as were working our way through, it continues to be uneven. So the trends we saw in december and january have continued into february and march. Fair enough. Its forcing us to be more conservative in our guidance, particularly in the first quarter. But i am getting a sense of optimism from one of your most important customers, which is jc penney, particularly for your izod. That doesnt seem to be weather related. Just seems theyre Getting Better. Yeah. I think the penneys business has improved overall. More bullish. Bullish about how hes positioned. I think hes getting the benefits of a lot of the initiatives he put in place. And i believe that as we work through the year, yo