Stocks fluctuated Wednesday, a day after the S&P 500 declined by the most in four weeks, as Wall Street awaited a monetary policy update from the Federal Reserve and assessed a steeper-than-expected decline in U.S. housing starts.
Jim Cramer and TheStreet Senior Portfolio Analyst Jeff Marks discussed retail stocks Walmart and Target and Wednesday's market conditions at the back of a COVID-19 peak expected in the country on Saturday.
Walmart vs. Target
Target said same-store sales rose 8.7% in the quarter, also exceeding expectations.
Cramer said Target is up 44% and Walmart is up 5%. "Walmart reported an unbelievably good number, Target reported a number that was slightly better than expected. So, which are you going to buy? I am a buyer of a company that had unbelievably good numbers," he said.
"That's why Walmart, and we own Walmart, and Walmart is so not done. There are seven pieces today that raised their price target [on the stock]. Walmart is doing omni channel that everyone thought they could not do. They're all wrong. It's very consistently going higher. I think Walmart is one of the most undervalued stocks in our portfolio," he added.
Cramer said there is an undercurrent that Saturday will be the peak of COVID-19 in the U.S. "Now remember it peaked in the U.K., it peaked in India, it can peak here when you get the combination of number of vaccines and number of people that are sick. And that's one of the reasons I think that Home Depot (HD) - Get Home Depot, Inc. (HD) Report can bounce, obviously Lowe's (LOW) - Get Lowe's Companies, Inc. (LOW) Report. Today seems to be the day where people are reassessing how dire things are," he said.