Cramer's Stop Trading!: Steve Madden, Skechers, Northrop Grumman

NEW YORK (TheStreet) -- On his Thursday Stop Trading! segment on CNBC, Jim Cramer said that Northrop Grumman's(NOC) share buybacks aren't "bogus," as is the case with other defense contractors, given that the company has retired 10% of its stock over the last two years.

Cramer said he's amazed that many defense contractors have engaged in stock buybacks without retiring any stock. On the other hand, Northrop Grumman has "a buyback that's a model for what I like to see from other companies," said Cramer, noting Northrop's "nice" dividend.

Cramer, a "shoe bull," said "it's very clear that this is one of the prevailing bull markets in otherwise not so bullish tape for retail."

Shoe retailers Cramer said he likes include Steve Madden(SHOO) and Skechers(SKX). He added that he think both company had "great" quarters and are "dramatically" undervalued stocks.

Cramer also said he likes Jones Apparel(JNY) and Deckers(DECK).

Cramer said houseware is another area of retail that's doing well, noting a recent upgrade of Williams-Sonoma(WSM); though he notes that Bed Bath & Beyond(BBBY) has been trading very poorly.

Cramer's Stop Trading!: Sallie Mae

Click here for Cramer's Wednesday Stop Trading! segment

-- Reported by Andrea Tse in New York

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