NEW YORK (TheStreet) -- TheStreet's Jim Cramer took a look at Macy's  (M) earnings report, as well as the recent ruling between Starbucks (SBUX) and Kraft Foods Group  (KRFT), where the the former will have to pay Mondelez (MDLZ) (a spinoff of Kraft) $2.7 billion for early termination of its distribution deal. 

The rapidly growing coffee brewer Starbucks has enough cash on hand, where the ruling doesn't seem to matter to the stock price, Cramer suggested. 

With that being said, he called the ruling a "travesty," adding that it should have been for no more than $1 billion.

At time same time, Cramer acknowledged that if shares were to sell off below $79 -- which doesn't seem likely -- it would a great bargain for a solid growth stock. 

Turning to Macy's, which topped earnings per share estimates of 39 cents by 8 cents per share, is "the most chronically undervalued stock in the world," he said. 

While investors and the media claimed the company's management was negative about its own business, Cramer argued that that wasn't the case. Instead, they were just worried about transitioning during a weak month. 

He added that October was a strong month, with a cold New York City -- which bodes well for Macy's. 

Cramer concluded that he likes the progression at the retailer and added that Phillips-Van Heusen (PVH) and V.F. Corp. (VFC) are "logical plays off Macy's."

-- Written by Bret Kenwell in Petoskey, Mich.

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