Cramer: Nike and Under Armour are Hot, Hot, Hot
Retailers were big on Jim Cramer's list of stocks Tuesday. The Mad Money host had some significant picks and pans during Tuesday's Stop Trading!, picking Nike and Under Armour as two of his favorite retail stocks to own right now.
"Wall Street, the big hedge funds are against them because they're worried cotton costs, they're worried about assembly costs, they're worried about labor costs. What they forget is they should be worried about sales and sales are great," Cramer said. "Both of these are really, really good stocks ... and they're ready to break out."
Two retail names Cramer is not particularly fond of, however, is Skechers and Urban Outfitters. Skechers "is a terrible company and a terrible stock," he said, with a "checkered record and a weak past."
"I'm sure there's a bull case for Skechers, there's a bull case for everything, but sometimes you have to make a judgment that a company's just not that good. My judgment is that Skechers is not that good," he said.
Urban Outfitters, meanwhile, was down 14 percent on the day, the victim of downgrades and post-earnings volatility after the retailer delivered unexpectedly weak profits. Citigroup cut Urban Outfitters' price target to $34 a share from $38, while Wall Street Strategies cut its rating on the firm to "sell" from "hold."
"Something's wrong at Urban," Cramer said. "You could argue they should just go J.Crew and say, 'listen, if we don't have the right to be able to miss a month or two or a quarter or two we should just go private.'"
"I can't find a reason to buy the stock unless that it's down 5," he said.
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