Shares of Walmart (WMT - Get Report) are down 3% Thursday, after the company reported earnings that missed on revenue expectations, beat earnings-per-share estimates, and provided lower-than-expected guidance.
The problem is that the stock rallied into the earnings report, as investors' expectations for flat or higher guidance began to grow, explained TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio. Cramer answered viewers' questions from the floor of the New York Stock Exchange.
The drop in expected revenue makes sense -- Walmart faces a soft market in Brazil and is closing some U.S. stores, Cramer said. But investors were still caught off guard. And even though the shares now yield 3%, Cramer said he prefers Action Alerts PLUS holding Costco Wholesale (COST) to Walmart.
Exclusive Look Inside:
You see Jim Cramer on TV. Now, see where he invests his money and why Costco is a core holding of his multi-million dollar portfolio.
Want to be alerted before Jim Cramer buys or sells COST? Learn more now.
What about Macy's (M - Get Report) ? The retailer has seen a solid rebound after it was oversold down to $34. But Cramer is holding off on pulling the trigger. Investors should see what kind of earnings VF Corp. (VFC - Get Report) reports on Friday before taking a position in Macy's, he said.
Sticking with retail, one viewer wanted to know if the management change at L Brands (LB - Get Report) is good or bad. CEO Les Wexner is taking over as CEO of sub-brand Victoria's Secret after its CEO Sharen Turney announced she was stepping down.
Cramer said Wexler has ruled the company with an "iron fist," and that both he and the company are winners. L Brands' most recent earnings report was actually pretty good, he said, so investors looking to get long can buy half of their position right now.
A viewer asked if now is the time to buy Boeing (BA - Get Report) after the stock's sudden fall and equally sudden rebound. Cramer said no -- the company currently has the SEC investigating it over accounting irregularities. Don't invest in a company with accounting issues, he said.
But there are ways to invest in Boeing without investing directly in the stock. Instead, investors can look to aerospace suppliers like Honeywell (HON - Get Report) and -- for investors looking to "bottom fish" -- Alcoa (AA - Get Report) .
When it comes to industrial stocks, Cramer said that he prefers companies like Honeywell, General Electric (GE - Get Report) -- which he said can go to $30 -- and Emerson Electric (EMR - Get Report) over Rockwell Automation (ROK - Get Report) .
What about TripAdvisor (TRIP - Get Report) ? Cramer said he liked the recent earnings results from Priceline (PCLN) and Expedia (EXPE - Get Report) more. He's a buyer of these two stocks on a pullback, he said, especially Expedia.
As for Jack in the Box (JACK - Get Report) and its surprisingly dismal earnings results, or whether to buy FANG stocks over consumer staples, Cramer said investors will have to be Action Alerts PLUS members and join the monthly conference call to get answers to these questions.
Jack in the Box is a holding in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio.
Cramer answers viewers' questions in a daily segment with TheStreetTV. Send your questions to him on his Facebook (FB - Get Report) page, or on Twitter (TWTR - Get Report) . Send questions to him @JimCramer with the hashtag #CramerQ.