NEW YORK (TheStreet) -- Shares of railroad company Kansas City Southern (KSU) were plummeting by 13.53% to $80.03 in late morning trading on Wednesday, after Republican candidate Donald Trump beat Democratic candidate Hillary Clinton in the U.S. presidential election on Tuesday.
"Do you want to own KSU which has 50% of its business taking materials from Mexico to here? That would not be what I'd reach for first," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning. Trump has threatened to leave the North American Free Trade Agreement (NAFTA) that was entered into by Canada, Mexico and the United States in 1994.
Instead of Kansas City Southern stock, "I would reach for Norfolk Southern (NSC) right now," Cramer said.
The Norfolk, VA-based railroad company has "managed to do incredibly well," despite coal being down, he explained. "I bank with [Norfolk Southern CEO] James Squires today."
Investors should realize that you are "buying on top of not necessarily terra firma" right now, Cramer cautioned. For example, under the expected Clinton victory, Norfolk Southern would have been the "greatest short ever" as Clinton wanted to crack down on fossil fuels, but now that Trump won, it's the "greatest long."
"Everybody who was short Norfolk has to go long it," he explained.
Shares of Norfolk Southern were higher in late morning trading on Wednesday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Kansas City Southern as a Buy with a ratings score of B-. This is driven by several positive factors, which the team believes should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks the team covers.
You can view the full analysis from the report here: KSUKSU data by YCharts