NEW YORK (TheStreet) --Shares of Target (TGT) were climbing by 8.01% to $77.15 in mid morning trading, after the company reported stronger than expected 2016 third quarter financial results before the market open on Wednesday.
"I have got to hand it to them, this was a very strong quarter," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" this morning.
Target's gross margins look "really good," Carmer noted. Target's third quarter gross margin rate came in at 30.2% compared to 29.4% for the same period last year. The company attributes this success to the sale of its pharmacy and clinic businesses, as well as strength in the sales growth of its Signature Category.
Target CEO "Brian Cornell has a done a lot of things, particularly in apparel, to get it right, the numbers are for real," Cramer stated.
Cramer called the solid report from Target "a nice surprise," after CVS (CVS) reported disappointing financial results and cut its guidance for the year last week.
Moreover, Cramer noted that Target's e-commerce business is growing "faster" than people had previously thought it would.
Target's online sales indicated strong growth this most recent quarter; comparable online sales improved 26% from the second quarter.
"A lot of things [Brian Cornell] put in place were investments, people didn't like the investments, but now they're panning out," Cramer said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.