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Cramer Likes Kohl's

Retail might be trading down on the whole, but there are individual standouts that could turn up nicely if the Federal Reserve cuts rates, Cramer said. And that’s because despite this awful environment, the companies are still executing.

Take a look at Kohl’s. It has dropped 28% since its April 20 high, but the last reported quarter showed sales up 8.7%, earnings were a penny ahead of the consensus and the margins expanded.

Same-store sales were up 1.3% as well, and that’s not bad for a big, maturing store like Kohl’s, Cramer said. Even better, though, is the fact that the price-to-earnings multiple is just 13 times forward earnings even though the long-term growth rate is 18%. Cramer’s rule of thumb is that when the multiple is well below the growth rate, the stock should go higher.

The company has some great catalysts too. Kohl’s is moving toward selling private-label and licensed products, which carry much better margins. Simply Vera by Vera Wang is the biggest brand launch in the company’s history, and Cramer doesn’t think it’s yet priced in the stock. Also, Kohl’s is coming out with Food Network-branded products.

“Kohl’s is a great retailer. It deserves to be bought,” Cramer said – as long as the Fed eases rates.

Questions for Cramer? madmoney@cnbc.com

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