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.
No Huddle Offense
In his "No Huddle Offense" segment, Cramer said there was not one, but two big deals in the oil patch today. Unfortunately, they were both bad ones and they both involved the same company, Freeport McMoRan ( FCX). Cramer said Freeport massively overpaid for Plains Exploration ( PXP) and McMoran Exploration ( MMR), which justifies the company's 16% loss in its share price Wednesday. McMoran Exploration's latest project in the Gulf has been a disaster, said Cramer, which makes one wonder why Freeport would pay up 87% for the company. Likewise, Plains Exploration owns a sizable chunk of McMoran, raising eyebrows all around. Cramer said Freeport McMoRan used to be a pure play on copper, but now has muddied the waters by adding oil. He advised selling all three companies by Thursday at the latest. To sign up for Jim Cramer's free Booyah! newsletter with all of his latest articles and videos please click here.To watch replays of Cramer's video segments, visit the Mad Money page on CNBC. -- Written by Scott Rutt in Washington, D.C. To email Scott about this article, click here: Scott Rutt Follow Scott on Twitter @ScottRutt or get updates on Facebook, ScottRuttDC