Jim Cramer states he likes these 3 smaller sized plays in battered retail sector

CNBC’s Jim Cramer stated Friday that while the retail sector has actually had a rough week, there are still numerous winners that stick out versus the deluge of stocks that tanked.

“The big four aren’t the only retailers that reported this week, and surprisingly, some of the smaller players actually did pretty well,” the “Mad Money” host stated, describing retail giants Walmart, Home Depot, Target and Lowe’s.

“While retail’s really horrible today, it’s not evenly horrible. Most shops might be having a hard time, however you have actually got a couple of that are doing rather well. And I’m informing you that TJX is absolutely a buy, [BJ’s Wholesale] I’m all right on, Foot Locker is alright for a trade,” he later on included.

Cramer’s remarks followed numerous retail giants reported their quarterly incomes today. Target and Walmart both reported frustrating outcomes that saw their stocks fall, while Home Depot and Lowe’s fared much better.

“These big-box chains are being eaten alive by inflation and changing consumer preferences — people are no longer spending like we’re in a pandemic, they’re spending like we’re back to normal,” Cramer stated, keeping in mind that that has actually resulted in excess stock for these merchants.

While that’s bad news for names like Target and Walmart, it’s a tailwind for discount rate merchants such as BJ’s and TJX, which runs TJ Maxx and Marshalls, Cramer stated.

TJX “preys on the weakness of other retailers — it’s like a vulture. For several quarters, they couldn’t get their hands on much merchandise because nobody had excess inventory. … When you see Walmart and Target struggling like this, you know TJX won’t have a problem getting good product,” he stated.

As for Foot Locker, Cramer stated its better-than-expected quarterly incomes puts it in a more comfy area than numerous of its larger peers.

“Clearly, these guys do have a better handle on the current retail landscape than most other operators,” he stated.

Disclosure: Cramer’s Charitable Trust owns shares of Walmart.

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