When the Fed drops interest rates, retail usually wins, Cramer said. So he’s been recommending the sector since the central bank’s 75 basis-point cut. But investors need to be selective.
Phillips-Van Heusen is priced for “the death of the consumer,” Cramer declared, but thanks to rate cuts and Washington’s stimulus package, that consumer might not be so dead after all. The stock’s down a massive 30% since Cramer recommended it Sept. 5, but now might be a better time to give PVH a look, he said.
PVH beat its third-quarter expectations, raised year-end guidance and predicted earnings per share would grow 12% to 16%. The problem, though, CEO Emanuel Chirico told Cramer today, is “we’re dealing with a consumer right now that is a little bit slower than it was before.”
“The stock is too cheap,” Cramer said. “I think it’s worth buying ahead of the stimulus cuts.”
He also likes Liz Claiborne for a trade, Jones Apparel for its execution, and VF Corp. he’s been a fan of for some time.
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