His first is Hewlett-Packard (HPQ), a stock which he owns for his charitable trust, Action Alerts PLUS. Cramer called HP an incredibly cheap growth stock with great management. The stock currently trades at just 8.7 times its forward earnings with a 13.5% long-term growth rate. Historically, said Cramer, HP trades at 17 times earnings, making this $36 stock worth at least $42 to $46 a share.

Sanford Bernstein made a huge mistake downgrading Verizon Communications, Cramer said Tuesday, but it does provide investors with a great buying opportunity. Verizon [VZ], in Cramer’s opinion, is a recession-resistant stock with growth potential that offers a healthy 5.8% dividend yield to boot. So he thought SB’s call was a bit off, to say the least. But with the knock to underweight from neutral – hold to sell – costing VZ 8.2% of its share price over the past two days, there’s a chance for savvy traders to capture the $3 the stock just lost, and maybe more.

Cramer said Johnson & Johnson has many upsides, including its aggressive cost cutting, strong drug pipeline and many great divisions with strong sales. A weakened dollar should also bode well for the company's vast international sales. Johnson & Johnson, which traditionally trades at 17 times earnings, is trading at just 13 times earnings. The company is exactly the stock to own in a recession, said Cramer, "and what could be better than getting it cheaper than Warren Buffet?" He said Johnson & Johnson could easily see $70 a share.

Historically, Caterpillar has been a great stock to own when its yield crosses over 4%. In October, 1990, shares rose 44% in 5 months after hitting the 4% yield level. In October, 2000 the yield again hit 4%, prompting the shares to jump 65% in the following six months. And finally, it occurred again 2002, with shares rising 135%, said Cramer. Cramer said he sees Caterpillar hitting $55 a share by the end of the year, but not before going lower first. He told investors to hold off buying shares now until the stock reaches $40 a share.

Cramer said Home Depot is a play on the coming housing bottom, which he still predicts is only 171 days away. He said the combination of historically low interest rates with a federal government now pulling out all the stops to help people buy and save their homes with be a boon for Home Depot.