NEW YORK (TheStreet) -- While there is some not-so-great news out of certain bank stocks and telecom companies, companies that rely on consumer spending continue to show strength, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on Tuesday. 

Shares like Burlington Stores (BURL) are up 4.7% and made new 52-week highs after reporting impressive earnings results. This came despite the warmer than usual weather, he said on CNBC's "Cramer's Stop Trading" segment. 

XRT Chart
SPDR Retail Sector ETF XRT data by YCharts

And after reporting three straight misses, AutoZone (AZO)  surprised investors will a "great quarterly result," Cramer pointed out. 

Consumers' purchasing power is increasing. That's good for an economy that is driven by consumer spending, Cramer said, since that spending makes up 70% of the U.S. gross domestic product. 

So while not everything may seem perfect -- and Verizon's (VZ) poor fourth-quarter pre-announcement surely isn't great -- there are still a lot of reasons to be positive, Cramer concluded. 

-- Written by Bret Kenwell

Follow @BretKenwell


TheStreet Ratings team rates AUTOZONE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate AUTOZONE INC (AZO) a BUY. This is driven by several positive factors, 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 solid stock price performance, growth in earnings per share, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

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

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

More from Opinion

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Latest Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Elon Musk's Twitter Tirade Is the Dumbest Thing on Wall Street

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Why Google's Search Momentum Won't Be Badly Hurt by New EU Rules

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Flashback Friday: Amazon, Chip Stocks, Memorial Day

Time to Talk Tesla: What Happened This Week, Elon?

Time to Talk Tesla: What Happened This Week, Elon?