In a market plagued by worries about more tariff exchanges between the United States and China, CNBC's Jim Cramer knows what investors are looking for: the stocks of safe, domestic, consumer-facing companies.
That's why the "Mad Money" host decided to review the recent trajectories of Bed Bath & Beyond, Wayfair and Williams-Sonoma, three home goods retailers with very different business models and prospects.
"Let’s compare the three because I think this is an important exercise [to] help you understand why some stocks work and others don’t," Cramer said.
Bed Bath & Beyond, the weakest of the three by Cramer's standards, has been struggling of late, pressured by competition from Amazon and questionable management decisions.
The e-commerce-focused Wayfair, however, is soaring, growing almost too fast given the company's lack of profitability, the "Mad Money" host said.
Then there's Williams-Sonoma, the parent of Pottery Barn and West Elm that is in the middle of a robust comeback and seems to have mastered the combination of online marketing and brick-and-mortar presence.
"They’re like Goldilocks and the three bears," Cramer said.
"Bed Bath & Beyond is too cold — those guys are trying, but the company just hasn’t invested enough in e-commerce and the business has been left behind. Wayfair’s too hot — they’ve got a great online-only strategy, but the stock has doubled just since the end of April and I think you[’ll] get a pullback if you wait," he continued. "Then there’s Williams-Sonoma, on the other hand. It’s just right: after years of testing, they’ve figured out how to seamlessly merge their digital and real-world businesses and the latest numbers were amazing. So if you want a nice, domestic home goods retailer, I say stick with Williams-Sonoma."