Andrew Harrer | Bloomberg | Getty Images
Listerine mouthwash bottles move through the production line at the J&J consumer healthcare products plant in Lititz, Pennsylvania.
“Here’s something you never hear from anyone: Maybe stocks are cheaper than we think,” Cramer said. “When we see gigantic Dow Jones components jumping like small capitalization stocks, which helped the venerable index trade through 23,000 at one point today … we do know that something real is afoot.”
“That’s some amazing, turbo-charged growth,” Cramer said. “Yet when you look at Johnson & Johnson’s price-to-earnings multiple, which is how we compare companies on an apples-to-apples basis … this stock sells for just 18 times next year’s earnings estimates.”
All in all, Cramer is tired of hearing how expensive stocks are. Thirty years ago this week, in 1987, the market crashed; back then, stocks traded at 29 times earnings. But now, any pullback could be a gift for eager buyers, Cramer said.
“I hear people say, ‘But Jim, this is peak earnings.’ I say, ‘Sure, I’m worried about the pricing of some [sectors]: DRAMs, semis, disk drives, flash memory. But I don’t think we’re seeing peak numbers from a JNJ,'” the “Mad Money” host said.