NEW YORK (TheStreet) -- TheStreet's Jim Cramer thinks Target (TGT) is poised to break out, and that is why he has added it to the Action Alerts PLUS portfolio.

Cramer, the AAP portfolio manager, and Director of Research Jack Mohr, noted Target's solid first-quarter results reported Wednesday, a bright spot in a somewhat dismal retail earnings season thus far. By comparison Kohl's (KSS), Macy's (M), J.C. Penney (JCP), Wal-Mart (WMT), Dillard's (DDS), Nordstrom (JWN) and Urban Outfitters (URBN) all missed expectations in some capacity.

Target's turnaround is off to a strong start, according to Mohr, with potential incremental upside from a number of areas this year, including continued outperformance of higher-margin signature categories. He also expects incremental sales from relatively new omnichannel features like ship from store and store pickup, and greater-than-expected sales of licensed merchandise from key movie releases including Avengers this month and Star Wars in December.

They said shares look compelling at 15 times fiscal 2016 EPS, relatively in line with Wal-Mart's 15.2 times but with a better near-term balance between investments and growth. "We expect high-single-digit EPS growth this year and low double-digit growth next for TGT vs. a 5% decline and 4% growth, respectively, for WMT," they said. Target shares trade close to $80.

Cramer and Mohr also think Starwood Hotels is ready to break out, saying it is benefiting from increasing travel versus hotel supply. Global growth in travel supports ithe company's large,l international exposure in the long term. The pending spinoff of its timeshares business and current examination of strategic and financial alternatives reflect a focused effort to improve the company's operational performance and stock price.

That's why Cramer and Mohr are bullish and see the stock hitting $100 in the medium term. Shares trade close to $85. 

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held a positions in TGT.

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