Macy's reports first-quarter earnings on Wednesday before the market open, and Cramer noted that the department store chain did not perform well in its most recent quarter. But he expects the company to perform well this time because CEO Terry Lundgren does not like to disappoint.
Despite his positive outlook on Friday, Cramer noted Monday morning that he prefers Target (TGT) to Macy's for a couple of reasons.
"We prefer Target to Macy's for Action Alerts PLUS because of the higher growth prospects and the big turn that we think CEO Brian Cornell is progressing fabulously with," he said. "We like Macy's [and] think it is cheap, but it is not in the position of a Canada-free Target when it comes to the numbers."
The consensus estimate calls for Macy's to report earnings of 62 cents a share on revenue of $6.32 billion, according to analysts polled by Thomson Reuters.
In the first quarter 2014, Macy's reported earnings of 60 cents a share, which edged analysts' expectations of 59 cents a share. Revenue totaled $6.279 billion, which came up short of the consensus estimate of $6.457 billion.
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: