This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer's 'Mad Money' Recap: A Resurgent Retail Sector

Search Jim Cramer's "Mad Money" trading recommendations using our exclusive "Mad Money" Stock Screener.

NEW YORK ( TheStreet) -- In retail, execution is everything, Jim Cramer said on "Mad Money" Tuesday. Cramer said today's retail earnings proved that when you have the right items in the right packaging and at the right price, even the most beaten-down of retailers has a fighting chance to get back up swinging.

Turnarounds happen all the time in the sports world, said Cramer, but when Best Buy (BBY) got a new CEO last year, no one cared. That was until today's surprise earnings that sent shares soaring by 13%.

It was a similar story at Urban Outfitters (URBN), whose new management team has spent the last 18 months revamping that ailing retailer, sending its stock up over 100% -- with an 8% move just today on strong 9% growth in same-store sales.

And then there's J.C. Penney (JCP), the retailer that just a few months ago was in a terminal tailspin. But since then, thanks to strong promotions, private-label sales and a new housewares department, the back-to-school season is strong at Penney; more importantly, the company has enough cash to make it through the holidays.

Cramer said that even with interest rates rising and home sales slowing, he still wants in at Home Depot (HD), because he knows that management team knows how to execute. He said all of these companies offered no excuses and no alibis -- they just provided results.

Betting on Casinos

There's a battle brewing in Las Vegas among the casino operators, Cramer told viewers. Las Vegas Sands (LVS - Get Report) offered up some sharp words for rivals MGM Resorts (MGM - Get Report) and Caesars Resorts (CZR), two companies Sands accuses of deeply discounting rooms to pay off their enormous debts.

But with shares of Las Vegas Sands up only 23% for the year, compared to 48% and 156% for MGM and Caesars, respectively, isn't Sands the one with the problem?

Cramer said that while Sands is now more of a China story, with over half its revenue coming from overseas, MGM and Caesars are the true Vegas high rollers. While Caesars is indeed on shaky ground and with large debts to repay, MGM has made real progress with its balance sheet and is poised to even turn a profit in 2014. The company now earns nearly $3 in casino and entertainment revenue for every $1 a guest spends on the room, Cramer noted, which makes it a wise decision to discount those rooms.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BUD $124.18 0.00%
DEO $108.33 0.00%
LVS $45.15 0.00%
MGM $21.30 0.00%
AAPL $93.74 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs