Jim Cramer says that in a world where Macy's (M) , J.C. Penney (JCP) and other retailers are closing stores left and right, TJX Cos. (TJX) is a great buy because it'll get all of the leftover merchandise.
"When you see more than 4,500 stores being shuttered you should be thinking: 'Wow, at last TJX gets to show off its grit' That should be what happens this quarter," Cramer said during his latest monthly conference call with his Action Alerts PLUS club for investors.
Cramer, whose charitable trust owns TJX shares, said the chain "makes the most money when there's excess merchandise around. Think about it. All the stores [that close] -- Macy's, J.C. Penney -- [TJX] is going to get all that merchandise."
He said the stock, which was trading late Friday around $72, looks like a good deal at $73 or better. "I know that TJX is an expensive stock relative to other retailers, but it's a growth retailer."
Cramer added that he believes TJX shares -- which have lost nearly 13% over the past 10 months -- are only dropping because "people are just saying: 'Listen, I don't want to be in retail [unless] I'm in Costco (COST) , Amazon (AMZN) and Wal-Mart (WMT) . I think that's too parochial. I think TJX is a buy here."
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