CNBC’s Jim Kramer said Friday that while the retail sector has It was a tough weekThere are still many winners who stand out in the face of the deluge of stocks that have collapsed.
“The Big Four aren’t the only retailers reporting this week, and surprisingly some of the smaller players actually fared well,”mad moneyHost, referring to the retail giants WalmartAnd Home DepotAnd Goal And Louie.
“While retail is really horrible right now, it’s not uniformly horrible. Most stores may be struggling, but you have a few that are doing well. And I’m telling you that TJX is definitely a buy, [BJ’s Wholesale] I’m fine , foot locker so well to trade,” added later.
Kramer’s comments come after several retail giants announced their quarterly earnings this week. Target and Walmart both reported disappointing results as they saw their stocks fall, while Home Depot and Lowe’s performed better.
“These big box chains are being eaten alive by inflation and changing consumer preferences — people are no longer spending like we’re in a pandemic, they’re spending like we’re back to normal,” Kramer said, noting that this has led to an increase in inventory for retailers. Retail these.
While that’s bad news for names like Target and Walmart, it’s a tailwind for discount retailers like BJ’s and TJX, which operates TJ Maxx and Marshalls, Kramer said.
TJX preys on other retailers’ weakness – it’s like an eagle. For several quarters, they could not get much of the goods because no one had surplus stocks. …When you see Walmart and Target struggling like this, you know TJX won. “I don’t have a problem getting a good product,” he said.
As for Foot Locker, Cramer said his better-than-expected quarterly earnings put him in a more comfortable place than many of his big peers.
“It is clear that these people have a better handle on the current retail landscape than most other operators,” he said.
Disclosure: The Kramer Charitable Fund owns shares in Walmart.
open an account now For the CNBC Investing Club to keep track of Jim Cramer’s every move in the market.
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”