But the good news gets even better on Monsanto's weekly chart because it also displays a longer-term edge formation. Collins said shares are at the top of the current channel and are preparing for a breakout to the upside, something the RSI momentum indicator also confirmed. But Collins didn't stop there. He noted that ever since the drought began, shares of Monsanto have been strongly correlated to the price of corn, which has been very strong as supplies dwindle. Also bullish is Monsanto's monthly chart, which displays a reverse head-and-shoulders formation, signaling a long-term breakout is coming. Cramer said the charts and the fundamentals agree and buying Monsanto makes a lot of sense.
Battle of the Toymakers
In the battle of the toymakers, who comes out ahead? Cramer pitted the stocks of Hasbro ( HAS) versus Mattel ( MAT) to find out. He said that while these companies seem similar on the surface, under the hood there is a clear winner. Mattel is currently the world's number one toymaker with brands including Barbie, Hot Wheels and American Girl. Hasbro comes in at a solid number two with lucrative toy deals for many of the Marvel Comics series. Both companies have similar valuations -- Hasbro trades at 11.3 times earnings while Mattel trades at 12.7 times -- and similar dividends -- 3.6% for Mattel and 4.1% for Hasbro. Cramer said while it was close, Mattel comes out the winner thanks to its consistent earnings stemming from its girl-oriented franchises. Boys, it turns out, are not a reliable source of earnings, said Cramer, and Hasbro is up against tough comparisons from last year's Transformers movie. Mattel is also a pure play on toys, noted Cramer, while Hasbro has more exposure to games and puzzles, a segment with increasing competition from console gaming and the Web. While both companies delivered upside surprises when they last reported, Mattel's core businesses were strong while Hasbro came in light on revenue. Hasbro also has more exposure to Europe. But while Mattel is the better investment, Cramer said the stock has also had a big run and currently trades just off its 52-week high. He told viewers that Mattel should only be bought on a pullback.