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Jim Cramer: The One Number to Watch When a Company Releases Forecasts

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Jim Cramer has one number for investors to pay attention to. 

When investors are taking a look at company forecasts, there is one number that they need to pay attention to. 

That number? 

"Gross margins. I mean if they say, listen, we see margin compression you have to sell because what that says is there's more competition coming in or that they have too much inventory or that there's actually a slowing in demand. That's the number you want to see. Margin compression. If you look at Stitch Fix, it says that there's going to be margin compression coming in. That's a sign that they're worried about demand and worried about inventory in despite that tariff issues," said Cramer. 

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