It's been less than six months since Amazon announced its deal to buy Whole Foods, but for CNBC's Jim Cramer and many of the country's supermarket chains, it's felt like years.
"On that fateful day, June 16, the whole supermarket sector got beaten to a pulp, with many of the grocers seeing their stocks fall 5 to 10 percent in a single session," the "Mad Money" host said.
Simply, Wall Street got ahead of itself, Cramer said. As soon as Amazon made its takeover public, analysts raced to slash their estimates on every possible competitor.
What they didn't account for was the near term, and the grocers' latest earnings results only confirmed that the analysts jumped the gun.
Wal-Mart, for example, hit all-time highs after it upped its forecast and announced a $20 billion stock buyback, a whopping 8.5 percent of its market cap at the time.
"If you want a major player where groceries are just one part of the equation, I definitely favor Wal-Mart over Target," Cramer said. "Long term, Wal-Mart is the only retailer with the heft to truly challenge Amazon. It's also got the leadership to pull it off thanks to CEO Doug McMillon."