Not sure what to stuff your stockings with this year? How about something different, like a few shares of companies that are well-timed for the holidays?
“Mad Money” host Jim Cramer is getting into the spirit of things and has some ideas he’s compiled into a list of stocking stuffers for 2011. They’re names he feels remain attractive despite what’s happening in Europe. Many are also retailers that are positioned to benefit from the shopping season.
Read on to find out what’s on Cramer’s wish list.
By Michelle Fox
Posted 21 Dec 2011
There’s a lot to like about Home Depot, Cramer says. First, the Atlanta-based home improvement retailer, which operates over 2,000 stores, has a nearly 3 percent dividend yield. Cramer thinks that’s big enough to provide a nice cushion of support if the stock gets slammed in a market-wide sell-off.
He also likes what Home Depot’s CEO has been doing to turn the company around, including cutting costs and increasing productivity. And it’s paying off, he says. The company reported better-than-expected quarterly results in November and raised its earnings guidance for the 2012 fiscal year.
Click here to read more about Cramer’s take on Home Depot.
The “Mad Money” host likes Tractor Supply, the largest chain of farm and ranch stores in the country, because it’s plugged into the domestic consumer economy.
Plus he thinks the Brentwood, Tenn.-based retailer has a “terrific niche.” It doesn’t suffer from online competition and because it is located in mostly rural areas or outer-ring suburbs, it doesn’t have a lot of competition from big box retailers or pet supply stores. Its core demographic is hobby farmers, who are in much better financial shape than the typical American household.
Read on to see what else Cramer has to say about TractorSupply.
Deckers Outdoors, which makes footwear and accessories, has been a terrific growth stock for years, Cramer says, and still has plenty of room to run.
He thinks the Goleta, Calif.-based company should see major savings and a nice boost to earnings from bringing its European distribution arm in-house. He also sees more growth for Deckers’ UGG for men and its more expensive, higher-fashion boots for women. Cramer thinks the stock could be a bargain at these levels.
Click here to see Cramer’s interview with Deckers CEO Angel Martinez.
Apparel maker PVH Corp. is an evolving story that just keeps getting better, according to Cramer.
The New York-based company’s brands include Calvin Klein, IZOD and Van Heusen. It also successfully acquired Tommy Hilfiger last year, which turned PVH into the third-largest apparel company in the world. Earlier this month, PVH reported an 8-cent earnings beat on a $1.81 basis and raised guidance.
Click here to see Cramer’s interview with PVH Corp. CEO, Manny Chirico.
McDonald’s is a “superbly managed company with terrific execution,” Cramer says. He also sees great things for McDonald’s in 2012 and 2013.
The fast-food chain operates almost 33,000 restaurants in 117 countries. Although 38 percent of the company’s sales come from Europe, Cramer says it’s the kind of business that can survive just about anything. Its global same-store sales are up 5 percent and it is ramping up its next leg of international growth in Asia Pacific, the Middle East and Africa, Cramer says. He thinks it’s a good safety pick for this time of year.
Read on to see what else Cramer has to say about McDonald’s.
International Paper pays you to wait with its juicy dividend yield, Cramer says. And despite the long-term secular decline of the industry, the Memphis, Tenn.-based paper and packaging company has managed its way to higher profits thanks to massive consolidation of the industry and terrific execution.
International Paper now has the best margins in the business, Cramer says, and he thinks things should only get better with its pending acquisition of Temple-Inland.
Click here to see Cramer’s interview with International Paper’s Chairman and CEO John Faraci.
Tanger Factory Outlet Centers is a real estate investment trust that is the only publicly traded pure play on the outlet business, Cramer says.
The Greensboro, N.C.-based company owns and operates 38 shopping centers in 25 states and has a solid dividend yield. Tanger is also a defensive name, Cramer says, with the business and stock holding up better than other retailer REITS during the Great Recession.
Click here to see President and CEO Steve Tanger’s interview with Cramer.
Cramer believes when it comes to consumer spending, we’re in a barbell economy — with the high end and low end thriving. There is nothing more emblematic of the high end than Saks, he says.
The New York-based retailer, which operates 46 Saks Fifth Avenue stores and 57 OFF 5TH stores, is down more than 10 percent year-to-date but had a very strong November, with company’s same-store sales rising 9.3 percent. The company’s CEO, Steve Sadove, also told Cramer the holiday season has been going well.
Click here to watch Cramer’s interview with Saks CEO Steve Sadove.
Pier 1 Imports is the “best turnaround story in all of retail,” Cramer says. The Fort Worth, Texas-based company is a specialty retailer of imported decorative home furnishing and gifts.
PIR was on the verge of bankruptcy in 2009, but since then, Cramer thinks, it has become one of the strongest performers out there. The key was the retailer’s strategy of shifting away from selling slow-moving big ticket items toward smaller, less-expensive pieces that sell more quickly.
Click here to watch Pier 1 Imports President and CEO Alex Smith interview with Cramer.
Cramer fave Macy’s has dramatically outperformed almost all of its peers, Cramer says. The New York-based retailer operates roughly 850 department stores under the Macy's and Bloomingdale's brands in 45 states.
Macy’s hit its 52-week high earlier this month, in part because the American consumer is alive and well and “spending like mad,” and also because of Macy’s “phenomenal” management team, Cramer says. The retailer had “fabulous” Black Friday numbers, reported a strong third quarter and recently posted “superb” same-store sales growth for November.
Click here to see Cramer’s interview with Macy's Chairman and CEO Terry Lundgren.