Shares of Kansas City Southern are up a modest 14% so far this year and trade at 18.9 times earnings with a 16% growth rate. Cramer said that's pricey compared to 12.8 times and 14% for Union Pacific (UNP), but in this case investors get what they pay for... growth.
In the Lightning Round, Cramer was bullish on Michael Kors (KORS), Morgan Stanley (MS), Wells Fargo (WFC), International Paper (IP), Yahoo! (YHOO), American Electric Power (AEP), Tractor Supply (TSCO) and EQT Corp (EQT).
Cramer was bearish on Cabot Oil & Gas (COG).
Am I Diversified?
In the "Am I Diversified?" segment, Cramer spoke with callers and responded to tweets sent via Twitter to @JimCramer to see if investors' portfolios have what it takes for today's markets.The first portfolio included: Clean Energy Fuels (CLNE), Cisco (CSCO), Groupon (GRPN), Broadcom (BRCM) and Banco Santander (SAN). Cramer said Cisco and Broadcom were too similar and suggested selling Cisco and Groupon and adding a biotech and an industrial stock to complete this portfolio. The second portfolio's top holdings included: General Mills (GIS), Procter & Gamble (PG), Kellogg (K), IBM (IBM) and JPMorgan Chase (JPM). Cramer said he'd sell General Mills and add in a bank and a drug stock to diversify this portfolio. The third portfolio had: Kellogg, Norfolk Southern (NSC), Walt Disney (DIS), Abbott Labs (ABT) and Bank of America as its top five stocks. Cramer said this portfolio was perfect and he wouldn't change a thing.