But Cramer said Ross is likely just being conservative with guidance, setting itself up to under-promise and over-deliver next quarter. He also said the 6% increase in same-store sales was actually very strong when compared to other retailers.
So why does Cramer remain bullish on Ross Stores? Mainly because the company is a regional to national growth story, one with lots of room to grow. He said the company's strategy of buying distressed merchandise from high-end retailers, then packing it away until next year has been a winning one that affords shoppers great deals. Additionally, Ross is also a play on the housing recovery because 25% of the company's items are home-related.
Beyond the company's growth, Cramer said it also offers investors a 1% dividend that has been raised every year for the past 18 years. The company also has a meaningful stock repurchase program that has retired 25% of its float over the past seven years.
With shares trading at just 14.5 times earnings compared to historically trading at 18 times earnings, Cramer said this 13% grower is one stock investors need to have in their stockings for this holiday season.