Cramer notes the headlines that said Macy's cut its forecast, but when you dive into it you see that Lundgren is very optimistic for the holiday season, which is when the department store chain does a lot of its business. The company also has SG&A down quite a bit. Cramer also says Lundgren is very clear that the company is on the move and the comparisons to last year will be very easy.
Cramer says investors are comfortable owning anything run by Lundgren. He points to the CEO as the reason the stock climbed today.
Macy's rose 5.09% to $61.57 on Wednesday. More than 17.1 million shares changed hands, compared to the average volume of 5,183,310.
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 revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
- You can view the full analysis from the report here: M Ratings Report