Mad Money

Cramer's top pick for retail in America

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Friday's weak employment number took down the futures ahead of the market on Monday, but Jim Cramer wasn't worried. He sees that consumers are still pretty strong thanks to all the money in their pocket from cheap gasoline.

One retail stock that is hot on Cramer's radar is CarMax. And no, it's not some cheap used car stock. It's actually the nation's largest seller of used cars, and its stock has been on fire lately.

Read MoreClick here to watch the "Mad Money" segment on CarMax

Last week for the second time in a row, the company reported spectacular results. This caused the stock to skyrocket 9.3 percent in a single session.

What's even better is that the "Mad Money" host thinks it could have more room to run in the future.

"CarMax benefits more from $2 gasoline than most other retailers, because it means people are much more willing to pay up for used gas-guzzlers that they might not otherwise be willing to purchase," Cramer said.

And while most wouldn't consider CarMax to be a retailer, the truth is that it benefits from the same trends that all of the apparel and housewares retailers have benefitted from this year.

In fact, Cramer thinks CarMax could be the best darned retailer in America!

The stock was in perfect position for reporting earnings, because unlike most other retailers it had barely run ahead of earnings. That means it has plenty more room to run after earnings.

Additionally, it is the business model that caught Cramer's attention. It doesn't just buy and resell used cars at a retail level. The company has grown so much that it now has a wholesale used car business. That means it can buy your used car, and then sell it to other used car dealers in an auction.

And while CarMax mainly focuses on the used car business, it also has a growing division for new cars. It moved 8,887 units last year, which was up 14.2 percent from the previous year.

In fact the business has grown so much that CarMax opened 13 new stores in the past fiscal year, and two new ones since March.

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"So it's no surprise that CarMax has been taking share and taking names in the used car market," Cramer said.

The stock currently trades at 22 next year's earnings, but Cramer still thinks this is cheap considering the strong track record and growth trajectory ahead.

"You may not think of CarMax as a retailer, but I think this seller of used cars is one of the best retail stocks in America."

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