TheStreet.com TV Recap: Retail Stocks to Buy

There are three retail stocks you need to keep an eye on, Jim Cramer said on TheStreet.com TV's Wall St. Confidential video Friday: Urban Outfitters (URBN Quote), Chico's FAS (CHS Quote) and Saks (SKS Quote).

Urban Outfitters and Chico's are on the mend and are now "up stocks" after being "down stocks" for 18 months, he told Gregg Greenberg, the host of Wall St. Confidential. Both stocks are "back on their growth path" and will be loved again, Cramer said. "These are strictly bullish from now on."

He also mentioned the fact that there are "major changes" going on at Saks. Cramer said he has to emphasize Saks because the Street is not a believer of it.

Concerning the lower-end retailers, Cramer told viewers they have to check out Costco (COST Quote). Costco's future is going to look even better now after the company changed its return policy, he said.

In addition, although Cramer believes Target (TGT Quote) is "clearly good," he called Wal-Mart (WMT Quote) a "wreck."

He advised people stay away from teen retail because the stocks "are all too high and are too easily rated down." The only exception Cramer gave here was Guess? (GES Quote), which he said is going to split, and which he said he likes.

Shifting gears to semiconductors, Cramer said Linear Technology (LLTC Quote), National Semiconductor (NSM Quote), Microchip Technology (MCHP Quote) and Texas Instruments (TXN Quote) are all right, but only as trades, not longer-term investments.

"This is the wrong season to own these," he stressed. "They will not outperform."