Cramer: Can top S&P stocks keep climbing?
He says, by identifying the top performing stocks within the index, investors can learn much more about the rally. That is, if gains are driven by fundamentals, the rally should endure. However, if gains are generated by special circumstances, then they may not.

Although the S&P 500 is widely considered a proxy for U.S. stocks, rather than look at the index as a single referendum on sentiment, Jim Cramer prefers to dig down into the index.

You can't turn around on Wall Street without hearing that the S&P 500 printed 2,000 on Tuesday, making yet another all-time high. Those same superlative-loving investors are also quick to tell you that the S&P 500 is on track to have the best August in 14 years.

Monster Beverage

"While Monster has been a monster mover, up 30 percent in August, I think it can go higher," Cramer said. However, the lion's share of the advance was due to a stake taken by Coca-Cola. Therefore, the "Mad Money" host views gains as due to a special circumstance. "Although I think it can grind higher from here, the big advance is probably over."

Mohawk Industries



As a maker of carpet, Cramer said the sharp advance in Mohawk reflects the Street's interest in catch-up housing plays, as a play on improving economic fundamentals. "Despite its 17 percent run this month, Mohawk is still down for the year. It could just be beginning its move," Cramer said.



Gilead

Although Gilead turned lower on Tuesday after a 17 percent gain this month, Cramer thinks this stock has more room to run due to the success of its Hepatitis C drug. "It is the cheapest drug stock I follow, selling at only 11 times earnings." Given these fundamentals, Cramer said, "I think it can go to $125 before it even gets as expensive as the average big pharma dinosaur."



Dollar General

Cramer believes gains in Dollar General are due to a special circumstance; its bid for Family Dollar. "And I suspect that gains could be rolled back if rival Dollar Tree is successful in arguing that there are serious antitrust concerns with the merger."



Ross Stores



Cramer said Ross Stores was somewhat of a coiled spring, having fallen well behind the market. "Pros wanted a better than expected quarter and they got it," Cramer said. Looking forward, if the company keeps executing (a tenet of fundamental investing), Cramer says it's reasonable to think, despite its 14 percent gain this month, Ross could take out its old high.



Gap



"If gasoline keeps going down and expectations remain low I believe Gap could rally further, simply because it's not expensive versus the historical average," Cramer said. For August shares have already rallied 14 percent.



Netflix



Up 13 percent in August, Cramer remains bullish on the long-term business prospects. "Netflix got enough publicity from its Emmy nominations that I can see them easily winning more subscribers."



Southwest

Although shares have climbed 13 percent this month, Cramer said Southwest is all about bookings and the price of jet fuel. "The former is still going up while the latter is still going down. That's a terrific combination." And as long as these fundamentals remains intact, Cramer sees shares continuing their ascent.

Tenet Healthcare



Up 13 percent for the month, Cramer believes the advance in Tenet is due to Obamacare. "Say what you want, the health care legislation has been terrific for hospitals and health maintenance organizations."



Masco



With gains of 13 percent for August, Cramer says the advance in Masco represents better than expected demand for home goods. Although he thinks the stock seems extended, he also thinks the advance should continue as long as interest rates remain low.



Home Depot



With a monthly advance of 12 percent, Cramer again views gains in Home Depot as another play on better than expected demand for home goods. Again, as long as rates stay low, "it should have more room to run."



First Solar

Even with gains of 12 percent, Cramer says, "First Solar is way too cheap even after its run and I expect it to lead us throughout the rest of the year. "