Jim Cramer -- Wait to Buy Dick's Sporting Goods

Shares of Dick's Sporting Goods (DKS) are down 8% on Tuesday, though the company reported earnings that beat estimates for earnings per share and revenue.

Same-store sales results weren't bad and the guidance was just OK, said TheStreet's Jim Cramer, co-manager of the Action Alerts PLUS portfolio, on CNBC's "Stop Trading" segment. 

Management gave investors a "negative read on the future," Cramer acknowledged. But it wasn't that bad, he added. 

Dick's will be a buy in the not-too-distant future, Cramer remarked. But when there's heavy selling on big volume, it's best for investors to wait on the sidelines until the stock finds a bottom, he said. 

Investors are beginning to sell a lot of retail stocks following the most recent rally, Cramer observed. Management teams are trying to lower expectations in the hope that they can overdeliver in the future and prevent the stocks from lurching too far, too fast, Cramer explained. 

At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.

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