Although investors are doing their best to push a rebound in stock prices, it's been hard for some retail stocks Monday. Shares of VF Corp (VFC) are down 2% and Under Armour (UA) down 8% following downgrades from Morgan Stanley.
These are "devastating" reports on two stocks that have been decimated over the past few months, TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Shares of VF Corp. are down 20% over the past three months, while Under Armour stock is down nearly 33% in that span. Analysts downgraded both stocks to underweight, preferring Nike (NKE) to Under Armour and favoring Hanesbrands (HBI) over VF Corp, Cramer said.
He explained the analysts' reports were very "rigorous" and suggested any investor interested in trying to pick a bottom in one of these two stocks should read them first.
For Under Armour, analysts cited falling average selling prices, a mature U.S. apparel business and a decline in footwear prices.
For Cramer fave VF Corp., the analysts said long-term growth appears ready to slow while VF's Timberland and North Face brands may have peaked, Cramer added.
"These are great companies," he said, but these reports are thorough and so they concern him. In general, the overall stock market's valuation must decline in order for the bulls to become highly convicted buyers of stocks, Cramer concluded.