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Jim Cramer Is Watching Walmart, Target Ahead of Earnings

Jim Cramer is watching Walmart and Target as we enter into retail earnings season next week. Here's why.

Next week we'll hear from a lot of the major retailers.  

And, if you've been following Jim Cramer, he's been talking a lot about the major retailers and his COVID-19 Index on Mad Money and Real Money articles.

Last night on Mad Money, Cramer noted, "This is indeed a situation where only the strong will survive...Most companies simply aren't prepared for extended shutdowns of their business and they can't get the credit they need to survive. Many companies have business interruption insurance, but those policies don't cover interruptions from pandemics, leaving them with few, if any, options. Just like the payroll protection plan for individuals, Cramer advocated for more protections so small- and medium-size businesses can survive. You won't see the distress in the stock market, however, as the averages comprise mainly those companies with strong balance sheets that can survive COVID-19," wrote TheStreet's Scott Rutt.

"That's why Cramer continued to recommend what may be the only survivors, namely Walmart (WMT) - Get Report, Target (TGT) - Get Report, Costco (COST) - Get Report and Amazon (AMZN) - Get Report in retail, and, in restaurants, Starbuck (SBUX) - Get Report, McDonald's (MCD) - Get Report, Chipotle Mexican Grill (CMG) - Get Report and Domino's Pizza (DPZ) - Get Report," continued Rutt.

And then on Real Money, Cramer talked again about the retailers.

"If you have a business and we have a pandemic and the government deems your business not essential, then you are almost always going to go into default. Take a look around at every business you see on the streets where you live. Most of them will not make it if this economy doesn't open wide," Cramer wrote in his Real Money column on Thursday afternoon. "But the companies with the big balance sheets? They make it. That's why I included Walmart (WMT), Amazon (AMZN), and Costco (COST) in Cramer's COVID Index, which, by the way, I badly want to amend to put in Target (TGT). We won't be like the old Soviet Union, which really only had one chain, GUM. But we will be close to it. What will we do with all of those tens of millions of people who work in retail or supply retailers?"

Read more from Cramer here. 

So what is the one retail name that Cramer is watching next week? "Walmart," he said.

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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