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Cramer’s Stocking Stuffer: Tractor Supply

Despite the European debt crisis looming over the markets, there are stocks that are insulated from the financial minefield that is the EU, “Mad Money” host Jim Cramer said Tuesday.

So he’s dedicated this week to picking “stocking stuffer” stocks—names he thinks that should work regardless of what happens across the Atlantic. And one of those on his wish list is Tractor Supply , the largest chain of farm and ranch stores in the country.

Cramer likes TSCO because it’s plugged into the domestic consumer economy and the American consumer is healthy and getting stronger, as evidenced by Tuesday’s better-than expected consumer confidence number.

The retailer caters to ranching and farming hobbyists and is a “terrific niche,” Cramer said. It doesn’t suffer from online competition and doesn’t face much competition from big box retailers or pet supply stores. The stores are located mostly in rural areas or outer-ring suburbs, places that Lowe’s and Home Depot tend to avoid.

Additionally, Tractor Supply’s core demographic—hobby farmers—are in much better financial shape than the typical American household according to Piper Jaffray. Hobby farmers are seeing their income rise faster than the rest of the country and the unemployment rate is lower in non-metropolitan regions.

The company’s most recent quarter was excellent, with a 6 cents earnings beat off a 52 cent basis. It reported higher than expected revenues that rose 17.9 percent year-over-year and same-store sales growth of 11.5 percent. It also raised its full year guidance for both revenues and earnings, as well as raising full year same-store sales up to 6.5 to 7 percent.

“Tractor Supply is exactly the kind of company that can keep working even if Europe blows up—a domestic retailer with a customer base that’s doing much better than the average American household,” Cramer said.

(Related: Cramer's Stocking Stuffer: Home Depot)

And with TSCO selling at 20 times next year’s earnings, it isn’t expensive when you consider the company’s 17 percent long-term growth rate and its room for expansion.

“I think you buy some here, and given the strength of the story, you can buy even more when it gets knocked down with the rest of the market the next time we get some bad news out of Europe,” he added.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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