NEW YORK (TheStreet) -- Last quarter, Macy's (M) disappointed investors by missing on both top and bottom line estimates. With the company reporting earnings on Wednesday, it will be an important tell for the holiday season.
TheStreet's Jim Cramer told Brittany Umar the general consensus was that retail apparel was weak.
However, Gap (GPS) positively surprised many investors in its recent earnings report, perhaps changing the tide for the struggling retail sector.
In this regard, Cramer said it may also be possible for Macy's to surprise investors to the upside.
The low-risk play could perhaps offer $4 of upside vs. $1 to the downside, he added.While not calling it a long-term pick of his, Cramer said that Macy's will be the gauge for the holiday season, and is also one of the last big retailers to report earnings. If the company reaffirms the positive holiday outlook, like United Parcel Service (UPS) and Amazon (AMZN), coupled with lower gasoline prices, we could be set up very well going into the holidays, Cramer concluded. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV