• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Consumer Discretionary

Cramer: Down Is No Longer Out; Fallen Angels Are Rising

It is a welcome change and a sign that the rolling bear market in retail has run its course.
By JIM CRAMER Mar 08, 2016 | 11:05 AM EST
Stocks quotes in this article: URBN, JCP, WFM, CMG, KR

Beware of a whole new pattern: down is no longer out. This morning we see a big run in Urban Outfitters (URBN). Why? Because it simply isn't as bad as we thought. It's expanded its format and made it much more of a home goods store. It pivoted. At the same time, it is offering more in the intimates, accessories, shoes and beauty category.

In other words, it has re-adjusted to what the consumer wants, all the hot categories, and it is doing extraordinarily better than expected. Notice I didn't' say extraordinarily well. Just much better than we are used to. That's very similar to J.C. Penney (JCP), which mentioned on its bang-up call that Sephora -- the perfume and make-up store within a store -- footwear, handbags and home all outperformed.

In other words, these two companies figured out what the customer is buying and took advantage of it for the holiday season, and it paid off. Both are examples of management "getting it," just really understanding what's selling and what isn't, a constant reminder of the reinvention of companies just when you have written them off.

To be fair, it is only since the second week in February that this market has embraced anything that's been a fallen angel, and I think that's because there's been such a gulf between the stocks of the have and have-nots, not between the companies themselves.

You know what else has been creeping up ever so slightly until the last 28 hours? Another former darling: Whole Foods (WFM). I was mystified why the stock didn't jump after the last quarter, as it gave you a preview of so much that is good that is happening whether it be loyalty stores or smaller formats or better delivery. Plus, the company is leveraging that balance sheet, just like Chipotle (CMG), to gather up shares because the company's management has been adamant that the turn is at hand even if the naysayers say no.

Can we also admit that the imminent demise or disarray of some smaller competitors has really hurt them, and the ascendance of Kroger (KR) as a Whole Foods killer may have reached its apex? I think that the stock's a buy right here, because it's only where I expected it to be immediately after the quarter was reported.

These are not idle moves. They are all part of what I regard as a major shift in the market to sift through what we thought was dead and do some buying. It is a welcome change, and a sign that the rolling bear market in all things retail has at last run its course.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Action Alerts PLUS, which Cramer co-manages as a charitable trust, has no positions in the stocks mentioned.

TAGS: Investing | U.S. Equity | Consumer Discretionary

More from Consumer Discretionary

Penn National: Should Investors Put Their Chips Down?

Bruce Kamich
Jun 28, 2022 12:13 PM EDT

Let's check out the charts and indicators on this operator of casinos and racetracks.

I'm Warming Up to Carnival, but Not Ready to Climb Aboard Yet

Jonathan Heller
Jun 27, 2022 10:00 AM EDT

The stock price of a cruise line operator is becoming more reasonable, but its heavy debt load remains a huge concern.

There's No Clear Sailing Ahead for Carnival: Here's How to Play It

Stephen Guilfoyle
Jun 24, 2022 11:32 AM EDT

CCL did lose a lot of money, much more than anticipated, but there are positives.

Bearish Bets: 3 Well-Known Stocks You Should Consider Shorting This Week

Bob Lang
Jun 19, 2022 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Beyond Meat Gives Investors Something to Chew On

Bruce Kamich
Jun 15, 2022 1:50 PM EDT

This veggie name is rallying sharply after a summer promotion announcement, but here's my beef with the charts.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 11:56 AM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    Check out what's going on in the Stocks Under $10 ...
  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login