This retail bellwether has everything Cramer likes in a department store: strong quarterly results, lean inventories and smart merchandising.
Inventory levels are especially important heading into the holiday season because you can’t get financing to bring in new product until the old product has been sold. And if a store is caught with too much, it’s forced to cut prices, which also cuts into profits. But Macy’s doesn’t seem to have to worry about that.
The stock’s relatively cheap, too, making it a buy in Cramer’s book.
Get Cramer’s full report on Macy’s.