Maybe not. O'Reilly (ORLY) - Get Report and AutoZone (AZO) - Get Report have been on the rise since July. At the time, the assumption -- like so many other retailers -- was that Amazon would squeeze these companies down to nothing. Now, though, it's time for Advance Auto Parts (AAP) - Get Report to catch up and rally, TheStreet's Jim Cramer said on CNBC's "Stop Trading" segment.
There's "an absolute great note" out by Morgan Stanley analysts on Advance Auto Parts Tuesday, Cramer pointed out. Analyst Simeon Gutman said there's plenty of low-hanging fruit for management to pick now that its transformation is coming together. He maintained his outperform rating, but bumped his price target to $120 from $96, implying about 20% from upside from Monday's close.
Referring to his "Mad Money" TV show, Cramer said he and his team have been adamant that these stocks are oversold. Gutman didn't mention the possibility of being acquired, which is one potential outcome that Cramer sees for Advance Auto Parts.
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"I really like this call," he added, saying it's been a horrendous year for the auto part retailers, but that's been changing.
After doing a lot of research on Advance Auto Parts, "we feel very strong that this is now the cheapest," said Cramer, who also manages the Action Alerts PLUS charitable trust portfolio. "This stock goes higher," he concluded.
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At the time of publication, Cramer's Action Alerts PLUS had no position in any security mentioned.