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Nabors vs Intercept: Any upside left?

(Click for video linked to a searchable transcript of this Mad Money segment)

All week, Jim Cramer has been comparing best performing stocks year to date, in an attempt to see if any have more room to run.

And after paring down the top stocks in the S&P as well as the Nasdaq, Cramer's quest has led him to two stocks Nabors vs Intercept Pharma.

When compared to one another, which has more upside potential in the quarter ahead?

"I couldn't ask for a better matchup than Nabors, a down and dirty oil driller, versus Intercept, a white hot biotech," Cramer said.

That's because the two stocks illustrate the two-track market that Cramer so often talks about.

Christoph Rosenberger | Photographer's Choice | Getty Images

High growth stocks make up the first track.

"Intercept is the kind of stock with massive secular growth potential, but no earnings," Cramer explained. Because the market has been starved for growth, stocks such as Intercept have attracted significant investment.

Value stocks lie on the second track.

"As a driller, Nabors is a cyclical company whose stock should thrive if the economy makes sharp improvements," Cramer added. If the global economy is about to get much better, investors view a stock such as Nabors as being too cheap. Hence a value stock.

Now here's the important part.

Cramer says there's a rotation underway in the market, in which investors take gains in their growth stocks and put that money to work in value stocks ahead of improvements in the economy.

"Therefore, when compared to one another, there is no doubt in my mind that Nabors is the better of these two stocks to hold into Q2," said Cramer.

Now don't get Cramer wrong, he doesn't think Intercept is a bad company. In fact, he says the fundamentals haven't changed.

"It's simply that super-risky biotech speculation has gone totally out of style on the Wall Street," Cramer said. "Nabors, on the other hand, is exactly the kind of stock this market has decided that it likes. Selling for less than 14 times next year's earnings it's cheap versus the average stock in the S&P 500, which sells for more than 17 times earnings."

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What's the bottom line?

"This market has lost its appetite for risky growth plays. Instead, It sees an improving economy, and it wants value stocks that can flourish in that environment," Cramer said. Therefore if you have gains in Intercept Cramer says take them and if you're looking to put money to work, look at Nabors."

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