Investors can afford to back off from Yeti now that the stock has pulled back from the hot gains it carried in recent months, CNBC's Jim Cramer said Monday.

After soaring 34 percent since he suggested the company last October, the "Mad Money" host cautioned against buying Monday's dip. Shares of Yeti, the high-end cooler manufacturer that went public last November, fell more than 5 percent during Monday's trading session.

"Even after today's reversal, the stock's still up dramatically from where it was trading when I gave it my endorsement in November," Cramer said.

Yeti's business is in great shape and has four initiatives that paint a positive future, he acknowledged. The company is focusing on attracting new customers, rolling out new outdoor lifestyle products, expanding abroad, and stretching its direct-to-consumer business, which grew 45 percent last quarter, Cramer pointed out.

Selling at 19 times the earnings estimates for next year, Cramer said the stock is cheap at current levels. But there are some headwinds in the near future that he thinks investors can avoid by letting it come down and buying shares in stages, he said. Current shareholders can also take some profit at current levels, he said.

"Yeti's lockup on insider sales expires in a little more than six weeks on April 23rd ... and that tends to put additional pressure on a stock. So proceed with caution for this brief window," the host said. "As much as we believe in this business, I also know the stock can take a lot more punishment before the pain comes to an end."

In addition to Yeti, other names that recently went public like Moderna and Tencent Music that pulled back on Monday will also present opportunities in the future, Cramer said.

Click here to find out how Cramer suggests playing your hand.

What triggered Monday's sell-off?

Brendan McDermid | Reuters

Traders work on the floor of the New York Stock Exchange.

Monday's market sell-off could be the first of multiple, Cramer said, calling for investors to be patient in order to take advantage of it at the right time.

"These pullbacks typically last for more than a day. I think the sellers will return, whether we get a deal with China or we don't. Be patient," the host explained. "But be ready to pounce when the machines take over again and drag the averages down to unsustainably low levels in a heartbeat like we saw early this afternoon. Their indiscriminate selling can eventually give you a good entry point ... as long as you don't jump the gun."

Despite positive news that trade talks between the United States and China are progressing, the major indexes ended the session in the negative. The Dow Jones Industrial Average shed more than 200 points, the S&P 500 fell roughly 0.4 percent and the Nasdaq dipped about 0.2 percent.

Some investors decided to sell on the headlines believing that a trade agreement has already been baked into the market, but Cramer called the move "ridiculous."