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Waist sizes are growing -- and your wallet can follow in kind -- if you take a chance on plus-size retailer Charming Shoppes. So said Jim Cramer said during his "Mad Money" segment on Tuesday.

Charming Shoppers ( CHRS), operator of Lane Bryant, Catherine's and Fashion Bug chains, is the next undervalued retailer that has the potential to ring up profits for investors, Cramer says. He says just because the stock is broken -- trading between 45 cents and $6.35 during the 52-week period -- it doesn't mean the company is beaten.

In fact, Charming is actually in the midst of a turnaround. In its second quarter ended May 2, the company was able to drastically narrow its loss, beating analysts' expectations by a penny.

While its total sales tumbled and its same-store sales were off 13%, its operating income came in flat and its gross margins improved, as its management aggressively cuts costs and inventory. And more improvement is likely as falling gas prices put extra cash in consumers' pockets that could end up in Charming's cash register.

Cramer said Charming Shoppes has two ways to win: by improving fundamentals and as a takeover target for other struggling retailers.

If you are as equally charmed by Charming, in-house expert Dan Fitzpatrick says to keep a stop at the recent low of about $3.27.

And Cramer advises to use limit orders and refrain from paying "a plus price for this plus name." Anything over $3.75, he says, and you could lose money.
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