The stock of TJX Companies ( TJX), the retailer that owns T.J. Maxx and Marshalls, is as cheap as its clothes, said Jim Cramer on his
"RealMoney" radio show Monday, and he wants you to buy the stock. Cramer has been bearish on retail, but said it's time to start looking for retailers that have bottomed. TJX fits the bill. TJX lowered earnings estimates last week, which is bullish for the stock, he said, because TJX now has reasonable earnings estimates it can meet. That's the first step for a stock to bottom, he said. What's more, TJX should benefit from a slowdown in the economy because people tend to shop more at T.J. Maxx and Marshalls when they don't feel as affluent. Third, the company's former CEO, Ben Cammarata, is back, said Cramer. Cramer is a big fan of Cammarata. Finally, Cramer believes that TJX should be able to sell some of its stand-alone retail stores such as Bob's Stores, A.J. Wright or HomeGoods to an "eager and willing private-equity market." TJX is a "safe and smart" buy here, said Cramer. The company's shares were recently trading up 57 cents to $21.78 on Monday.
As for biotech, Cramer likes Genentech ( DNA) and Amgen ( AMGN).
Commenting on exchange-traded funds within energy, Cramer prefers the Energy Select SPDR ( XLE) to the iShares S&P Global Energy Sector Index Fund ( IXC) because the XLE is more liquid, he said. Cramer isn't giving up on energy, but he believes that the XLE will pull back to $47 unless there is a cold snap. Cramer is looking to trade energy stocks now, not to invest in them, he said. He would use any rise in oil stocks to lighten up and be ready to buy again on the way down. The XLE ended the regular trading session Monday at $48.86.