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Shares of Burlington Stores (BURL) are up about 6% Thursday, after the company beat on earnings estimates. Management also raised its sales guidance for the full year.

This company continues to perform and is one of the top picks from Matthew Boss, an excellent retail sector analyst out of JPMorgan, TheStreet's Jim Cramer, manager of the Action Alerts PLUS portfolio, said on CNBC's "Stop Trading" segment.

Burlington's success is simple: It's a discount retailer that's not based in the mall. "There's the recipe," Cramer reasoned.

He turned his attention to Caterpillar (CAT) , which is up 1.5% on the day after receiving positive commentary from analysts at Merrill Lynch. They say the company will report an upside surprise in its earnings.

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If that's the case, Caterpillar shares will go much higher, Cramer reasoned. Even though the stock is up 45% over the past 12 months, there's still plenty of shorts in the name, he explained.

Mining spending is on the rise, inventories and orders are good and the backlog is strong for Cat, Cramer concluded.

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At the time of publication, Cramer's Action Alerts PLUS had no position in any companies mentioned.