GO
Loading...

Cramer: Blue Chips, Retail Stocks Going Through Revaluation

CNBC's Jim Cramer is seeing signs of a bull market in retailers and blue chip stocks and said that a significant revaluation is happening right now as investors shift to tried-and-true companies.

"I like what is happening, in that it is the end of the quarter there are people that will want to preserve gains, there are a lot of sectors that are doing well," Cramer said Monday on "Squawk on the Street."

Cramer said that when you look at the charts of companies—using Kimberly Clark as an example—you can see that there is "a revaluation of a lot of companies going on. Kimberly Clark is a steady company that gives you a good yield."

Cramer also pointed to PepsiCo, which he called a "real winner" under CEO Indra Nooyi, and thinks that it is one of the many blue chip companies that "just doesn't want to quit. I am so impressed," he said. Along with Pepsi, Cramer sees Coca-Cola in the midst of a revaluation by investors, much like it did when the stock eclipsed the market cap of General Motors, which signaled a change in investor preferences.

Even several "left for dead" stocks have shown strength, like Best Buy, Bed Bath and Beyond and Dollar General. Cramer sees this as a rising tide in the retail space, noting that the Retail Holders ETF is sitting at 52-week highs. "Come on, I thought the consumer was beat!" he said.

(Read More: Dollar General Profit Up on Food Sales)

"What retailer do you sell besides JC Penney here?" he asked, adding that what he's seeing in the market are signs of a bull market.

"American companies have been able to readjust and get the right mix," Cramer said, referring to Dollar General. "I was worried about tobacco, I was worried about a price war (in dollar stores). All of these worries have disappeared as if some how during the quarter the company readjusted and did well. I look at Dollar General and I have always liked their business model."

With the news coming out of Cyprus that uninsured depositors will lose out in the EU bailout, Cra

mer thinks this could be a boon for U.S. banks. He said this could influence wealthy individuals abroad to put their money into the safer U.S. system.

(Read More: Cyprus Clinches Last-Minute Deal to Secure Bailout)

"Our banks are the winners here. I think it's OK to start thinking like that," he said, "At least they'll be preserved," he said, adding that even businesses in Europe may start shifting money into U.S. banks to protect their capital in the wake of the Cyprus precedent.

(See More: Jim O'Neill Looks Inside the Cyprus Deal)

"This is a United States centered market and we're no longer focused on the ATMs in Cyprus," he said.

— By CNBC's Paul Toscano. Follow him on Twitter and get the latest stories from "Squawk on the Street" @ToscanoPaul

Disclaimer