Why Jim Cramer Says UPS Stock Shows Retail Is Back

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says the transports have always been the most important index he follows, and these stocks have been going higher recently, unlike airlines and railroads. Packaging, specifically UPS  (UPS), has also been rising.

Cramer notes UPS reported a poor number and the stock dropped from $100 to the low $90 range. But the stock is now above $100 again because retail sales have improved and the harsh winter weather has passed. He believes UPS is the tell that the tepid April sales number will be wrong.

Cramer likes retailers going into earnings season because UPS is telling him that shopping is back.

Must Watch: Jim Cramer Says UPS Really Was Affected by Weather, Retail Is Back

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Separately, TheStreet Ratings team rates UNITED PARCEL SERVICE INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) 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 revenue growth, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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