Jim Cramer upped his price target for Google ( GOOG), to $500 from $450 on his "RealMoney" radio show Tuesday.

Cramer called Google the "fastest-growing company in the world" and the "greatest equity phenomena of the 21st century." He raised his price target based on his estimate that Google will earn $10 a share in 2006.

The average stock trades at about 18.5 times earnings and is growing at about 10%, Cramer said. Google is growing about three or four times as fast as the average stock, so Google should trade at a multiple of at least three times 18.5, Cramer added. That would put Google at $550. "No wonder it keeps going higher."

Cramer said Google is cheaper, based on 2006 earnings, than other well-known growth stocks such as Electronic Arts ( ERTS), Whole Foods Market ( WFMI), Yahoo! ( YHOO) and Amazon.com ( AMZN). The market loves to find stocks growing "furiously" that are selling for less than what other growth stocks are selling for, he said.

Cramer said Google's success stems from its value proposition. Google allows "everybody to have every bit of information at their fingertips around the world" for free, he said, and advertisers are able to target their ads precisely.

It's the "greatest value proposition," he said, adding that Google will wipe out every section of the newspaper.

Cramer recommended -- if one doesn't already own Google -- purchasing one share on any pullback and buying an additional share each 20 points the stock may drop until one owns 5 shares.

Google is the "fastest-growing and most lucrative company in an era where growth is hard to come by." Based on 2006 earnings, "Google is a true bargain," said Cramer, and is "not done going up."

"I need you in Google," he said.

Danger Zone

Cramer's Danger Zone stock Tuesday was Aeropostale ( ARO). Cramer said Aeropostale had extended its 50%-off sale by a week. When a retailer makes a move like this during the holiday season, it usually "means you're hurting," said Cramer. He believes that Aeropostale could be having a shortfall. "Sell the stock right now," he said.

Sector Spotlight

Cramer answered listeners' questions about the energy sector in the sector spotlight Tuesday. In response to a question about Equitable Resources ( EQT) as a natural-gas play, Cramer said Equitable is not as levered to natural gas as he would like.

He recommended Chesapeake Energy ( CHK) as a better play on natural gas.

Commenting on Superior Well Services ( SWSI), Cramer said the stock is "two thumbs up."

Of Tesoro ( TSO), Cramer said it's his second-favorite refiner. His favorite is Valero Energy ( VLO), which he would like to buy on a pullback and believes will finish the year at its highs.

Cramer is not a fan of the integrated oil companies like Exxon Mobil ( XOM), Royal Dutch Shell ( RDSA), BP ( BP) or Chevron ( CVX). He believes that the integrated oil companies will need to make acquisitions to increase their energy reserves.

Cramer said drillers and natural gas are the places to be.

Cramer's Callers

In response to a question about South Financial Group ( TSFG), Cramer said that with the Federal Reserve almost done raising interest rates, the stock has very little downside and a lot of upside.

Cramer also said Berkshire Hathaway ( BRK.B) is a stock he would buy more of with the Fed almost done tightening.

Of IBM ( IBM), Cramer said he is "a little shocked" and a "tad more nervous" about a second downgrade of IBM Tuesday. He believes that IBM is a very inexpensive stock, but he is worried that somebody knows something. He would wait a couple days before buying the stock.

Cramer said Intersil's ( ISIL) removal from the Nasdaq 100 Trust ( QQQQ) is unimportant. He would buy the stock if it were down on the news.

Finally, Cramer said Best Buy's ( BBY) quarterly results Tuesday were "awful." He would be interested in the stock if it traded to $43 as an investment for the next year. Best Buy traded at $44.14 late Tuesday.
At the time of publication, Cramer was long Yahoo!

James J. Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. Listen to Cramer's RealMoney Radio show on your computer; just click here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict."