Why Jim Cramer Likes UPS (UPS) Stock Compared to FedEx (FDX), Amazon (AMZN)

NEW YORK (TheStreet) -- UPS  (UPS) said Tuesday it would hire between 90,000 and 95,000 employees for the holiday season, and TheStreet's Jim Cramer says this means the company is setting up for a strong holiday season.

He thinks UPS, which is a core holding for his and Stephanie Link's Action Alerts PLUS Portfolio, is "a terrific place to be" ahead of when FedEx  (FDX) reports because it is so far behind FedEx and yet it spent so much money to have a better holiday season.

Cramer calls UPS "a coiled spring." He knows people prefer FedEx, but "sometimes you've got to buy what's not loved in order to be able to make money."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

However, he is not recommending Amazon (AMZN) here because he thinks the stock, which is one of the many he thinks could be sold off to raise money for the Alibaba IPO, is likely to stay down after the Alibaba deal. He also thinks investors could have a chance to sell it after Alibaba goes public.

TheStreet Ratings team agrees, as it rates UPS a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate UNITED PARCEL SERVICE INC (UPS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity 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."

You can view the full analysis from the report here: UPS Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

More from Markets

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Owner of Moviepass Sees Stock Plummet

Owner of Moviepass Sees Stock Plummet

Ford, GM Gain as China Slashes Auto Import Tariffs

Ford, GM Gain as China Slashes Auto Import Tariffs