Cramer said that Ascena remains a terrific story. The company maintains a stable of diversified stores including Justice for teens and tweens, Maurice's for women in the 20s, Dress Barn for middle aged shoppers and the company's recent acquisition of Charming Shoppes gave it Lane Bryant and others to tackle the plus-sized market.
Cramer said that Ascena's diversification of its brands is perhaps its largest strength, as each concept has little to do with the others. Yet all of Ascena's stores focus on customer service and relationships, something that never goes out of style.
Trading at just 11 times earning with a 15% long-term growth rate, Cramer said Ascena remains one of his favorite value-oriented retail stocks and he would be a buyer going into the holiday season.
Improvement in China
There are three things weighing on our markets, Cramer told viewers: Europe, the U.S. fiscal cliff and a slowing China. But at least one of those things is starting to improve, he said, as recent macro and micro-economic data have shown, the Chinese economy may have bottomed.
On the macro side, Cramer said there's been a slew of data showing China is improving. Chinese exports are at a five-month high, he noted, which still makes their economy far from great but certainly better than most people think.
He said the Chinese have only cut interest rates twice, leaving lots of room for further action. But more importantly, China has been directly injecting cash to stimulate growth, a plan that's now working as the country's retail sales, purchasing manager's survey and even iron ore prices are starting to climb.
There's also positive news from individual companies, Cramer said, as
have all signaled that 2013 is looking better than 2012.