Thanks to the leadership of CEO Brian Sharples, the online vacation rentals service provider is a well-run company, Cramer said on "Squawk on the Street." He called it "the Priceline for rentals" and thinks it could be acquired by Priceline, too.
Still, HomeAway's stock traded slightly lower in mid-morning trading.
"I don't know why the stock [is lower]. It shouldn't be down," Cramer said. "This is a very powerful recommendation, and I really like it."
—By CNBC's Drew Sandholm.
DISCLOSURE: When this story was published, Cramer's charitable trust did not own HomeAway or Priceline.