NEW YORK (TheStreet) -- TheStreet's Jim Cramer believes in Macy's (M) stock despite Tumi's (TUMI) weak results and Ralph Lauren's (RL) weak forecast, two companies that are integral to what is sold at Macy's stores.
But Costco (COST) and Gap's (GPS) solid numbers give Cramer more confidence and he leans toward buying Macy's ahead of its quarterly results report on Wednesday. He notes this market is so mercurial that a domestic retailer could decline on a given day and investors can then swoop in and buy it. If Macy's takes an intraday hit prior to the results, then Cramer suggests buying it.
Cramer also named Macy's CEO Terry Lundgren as one of his "21 Bankable CEOs" and believes people underestimate him. He notes Lundgren does not grow a lot of stores, but Cramer likes his OmniChannel approach and believes Lundgren is a "great merchant" and a "terrific executive" who has gotten a lot out of the company.
Separately, TheStreet Ratings team rates MACY'S INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate MACY'S INC (M) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."