Publish date:

Jim Cramer's 'Stop Trading!': Buy Disney

The entertainment giant should continue its strong performance, Cramer says.

Disney (DIS) - Get Walt Disney Company Report should remain strong, Jim Cramer said on CNBC's "Stop Trading!" segment Wednesday.

Cramer praised CEO Bob Iger's assessment of the entertainment company's strong theme-park revenues. "Iger said something fabulous on that call. ... It's perfect right now. The economy's weak, so they don't have enough money to go overseas." Cramer also noted that thanks to a weak dollar, people are coming to the U.S. to vacation.

Although it's odd for an entertainment company to cite economic weakness as a driver of sales, Cramer pointed to Disney's strong quarter. "The numbers were up. If the numbers were down, I would buy that, but the numbers are up. ... It was a good quarter, and the next quarter will probably be good too."

Cramer went on to explain a bounce in several retail stocks off of strong earnings.

VF Corp

(VFC) - Get V.F. Corporation Report

, the owner of North Face, "preannounced twice and each time raised guidance. They beat both guidances. That stock makes a lot of sense to be up."

On the other hand,

Ralph Lauren

(RL) - Get Ralph Lauren Corporation Class A Report

shares rose for a very different reason. "People were so negative on it that it had no choice but to go up."

Cramer concluded that there is a lot of negativity baked into the retail sector.

Of Lehman Brothers' downgrade of

TheStreet Recommends

Clorox

(CLX) - Get Clorox Company Report

to underweight from equal weight, Cramer said, "That was a brutal downgrade."

Investors had previously blamed the acquisition of Burt's Bees for troubles at the consumer goods giant. "It looks like Clorox

itself doesn't look so hot." Cramer got behind the Lehman report, saying it astutely observed that "management doesn't have any credibility. They have not delivered."

At the time of publication, Cramer had no positions in any of the stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC. Click

here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click

here to order his book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.