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Jim Cramer Says He Likes These Three Smaller Plays In Beaten Retail

CNBC’s Jim Cramer said on Friday that while the retail sector has have a rough weekthere are still some standout winners ahead of the rising stock wave.

“The big four weren’t the only retailers reported this week, and surprisingly some of the smaller ones actually did quite well,”Crazy money“said the presenter, referring to the retail giants Walmart, Home Depot, Target and Lowe’s.

“Although retail is really horrible right now, it’s not equally terrible. Most of the stores are probably struggling, but you have a few that are doing pretty well. And I said to you that TJX definitely buy, [BJ’s Wholesale] I’m fine, Footboard is fine for a transaction,” he later added.

Cramer’s comments came after several retail giants reported their quarterly earnings this week. Target and Walmart both reported disappointing results as their shares fell, while Home Depot and Lowe’s had better results.

“These big box chains are being eaten away by inflation and changing consumer preferences – people are no longer spending like we are in a pandemic, they are spending like us,” Cramer said. We’re getting back to normal,” Cramer said, noting that could lead to excess inventory for these retailers.

While that’s bad news for names like Target and Walmart, it’s a breeze for discount retailers like BJ’s and TJX, which run TJ Maxx and Marshalls, says Cramer.

TJX “hunts for other retailers’ weakness – it’s like a vulture. For many quarters, they can’t get a lot of stock because nobody has excess inventory. … When you see Walmart and Target is having a hard time like this, you know TJX won. “It’s okay to have a good product,” he said.

As for Foot Locker, Cramer said better-than-expected quarterly earnings made the company feel more comfortable than some of its larger peers.

“Clearly, these guys are better able to handle the current retail landscape than most other operators,” he said.

Disclosure: Cramer’s Charity Trust owns shares of Walmart.

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