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Goldman Sachs

(GS) - Get Report

proved today that it's the only broker to own, Jim Cramer told viewers of his "Mad Money" show Thursday.

Until Goldman's earnings report today, "everyone viewed brokers as cut from the same cloth," said Cramer, who owns Goldman for his charitable trust,

Action Alerts PLUS.

During a bull market, "everyone looks like a genius," but Goldman Sachs proved itself during a downturn by shorting the mortgage market, Cramer said: "When you're right quarter after quarter after quarter, it isn't luck."

In spite of this success, Goldman still has a very low multiple on earnings per share. Wall Street is underestimating Goldman because it assumes all brokers are the same. But given Goldman's exceptional track record, "Why settle for less when you can have Goldman Sachs for $230?" Cramer asked.

He predicted that "Goldman will be dragged kicking and screaming into a higher multiple" and that Goldman deserves to sell at $300. "Goldman is the only one you want to own."

Yummy

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Cramer welcomed

Yum! Brands

(YUM) - Get Report

CEO David Novak to the show and asked him how Yum! has stayed consistent in the restaurant business.

Novak pointed to Yum's "global portfolio of leading brands," which includes Taco Bell, KFC and Pizza Hut. That diversity gives Yum! earnings power and tremendous opportunities to expand around the world. Novak said that Yum! is the No. 1 retail developer in the world, ahead of chains such as

McDonald's

(MCD) - Get Report

and

Starbucks

(SBUX) - Get Report

. Yum! is building one restaurant per day in China and continues to grow elsewhere, Novak said.

Cramer asked how Yum! knows that "they love the Colonel in China."

Novak replied that Yum! is bringing a "known quantity" to the Chinese market and that the company invests in building brands that work well in Chinese culture.

Cramer asked Novak about food-price inflation, wondering why it doesn't surface in Yum!'s earnings.

Novak said that the power of Yum's portfolio and being a global growth company allows it to weather "any storm you can imagine," and that it's working on the food-inflation problem.

When asked about Yum's image as an unhealthy brand, Novak asserted that the "food tastes good" and that "consumers are looking for taste." He also said that Yum's menus are getting broader all the time in response to consumers' concerns.

He mentioned the "Fresco" line at Taco Bell and Yum's efforts to take trans fat out of KFC's cooking oil as specific moves that Yum! was making to offer customers more choices. "We're not resting on our laurels," Novak said.

Cramer called Yum! a consistent buy. Even in the wake of an E. coli outbreak at its Taco Bell chain last winter, Yum! "has had unbelievable growth," making it one of the most consistent restaurant stocks on the market.

Lululemon Lowdown

Cramer said that if investors are searching for the next

Crocs

(CROX) - Get Report

or

Under Armour

(UA) - Get Report

, they should look to

lululemon

(LULU) - Get Report

.

The yoga-apparel company's stock is up 28% from when Cramer recommended it two months ago, and he believes lululemon is following Under Armour and Crocs.

Cramer pointed out that naysayers claim lululemon has a niche demographic -- only 1% to 2% of Americans practice yoga. Although bears are correct that "a momentum stock cannot live on yoga alone," Cramer believes that lululemon has growth potential as a woman's apparel retailer. Therefore, its addressable market is 50% of the population, and there is a lot of room for the company to grow, he said.

Cramer welcomed lululemon CEO Robert Meers to the show. He asked Meers if his company's brand could work outside of the "wealthy parts of wealthy cities." Meers replied that he believes "people will pay for quality," a category in which the company is unmatched. Furthermore, lululemon operates well in college towns.

When Cramer asked why lululemon doesn't have more stores, Meers responded that the brand's cachet is very important and that the "right thing to do is be special." For customers who don't live near a store, Meers said the company has an 800 number people can call for home delivery.

Cramer concluded that investors should put lululemon in the same category as

Tiffany

(TIF) - Get Report

and other luxury brands.

Sell Block

During the "Sell Block" section of the show, Cramer addressed whether his recent preference for

Wachovia

(WB) - Get Report

was to be viewed as a slight on other banks, such as

Wells Fargo

(WFC) - Get Report

and

Bank of America

(BAC) - Get Report

.

Cramer pointed out to viewers that recommending one bank does not mean the others in the same sector are not good, and to think so is to create a false dichotomy between banks. In fact, if a sector is doing well, it's often appropriate to like many stocks in that sector.

Tuesday's Fed rate cut has been good for stocks, so investors need to change their worldview to reflect the new market environment. When interest rates were higher, it was better to own banks that would "shine no matter what," but when the Fed acted aggressively, it became important to react. Although Wachovia struggled before the rate cut, it's going to perform better now that interest rates are lower, Cramer said.

Precisely because Wachovia is not run as well as banks like Wells Fargo, its value depends on the rate cut, so in this new situation, its value will increase. Favoring high-quality banks "even when the world changes" is a bad idea, Cramer said. Investors need to change with new events.

Lightning Round

Cramer was bullish on

FCStone Group

(FCSX)

,

KBR

(KBR) - Get Report

,

Foster Wheeler

(FWLT)

,

Washington Group

(WNG)

,

McDermott

(MDR) - Get Report

,

Chicago Bridge and Iron

(CBI)

,

Jacobs Engineering Group

(JEC) - Get Report

,

Annaly Capital

(NLY) - Get Report

,

BEA Systems

(BEAS)

,

Discovery Holding

(DISCA) - Get Report

,

Omniture

(OMTR)

,

Baidu

(BIDU) - Get Report

,

Google

(GOOG) - Get Report

,

Nokia

(NOK) - Get Report

,

RadioShack

(RSH)

, and

Best Buy

(BBY) - Get Report

.

Cramer was bearish on

Actuate

(ACTU)

and

Motorola

(MOT)

.

'Sudden Death'

During his "Sudden Death" segment, Cramer was bullish on

Nastech

(NSTK)

,

Qwest

(Q)

,

China Mobile

(CHL) - Get Report

,

Paccar

(PCAR) - Get Report

and

Nvidia

(NVDA) - Get Report

. He was bearish on

Qiao Xing

(XING)

and

Acadia

(ACAD) - Get Report

.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

For more of Cramer's insights during the Lightning Round, click here

.

At the time of publication, Cramer was long Goldman Sachs and McDonald's.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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