CNBC's Jim Cramer shared his take on two retail giants reporting third-quarter earnings on Tuesday.
Cramer used the acronym W.A.T.C.H. to talk about the five retailers who are thriving and will survive in the future. He used this term in 2019 as his favorite retailers with scale. Amazon.com (NASDAQ:AMZN), Target Corporation (NYSE:TGT) and Costco Wholesale Corporation (NASDAQ:COST) are the other three retailers with Walmart and Home Depot in the Cramer basket of retail stocks.
Cramer on Walmart: Cramer called Walmart the winning retail stock right now with no stimulus.
“To get rid of that stock is very short-sighted,” Cramer said on anyone selling Walmart Tuesday. He thinks Walmart reported an amazing third quarter.
“Walmart should be bought at $149, this was an amazing number.”
The CNBC host said the online number from Walmart was strong and the stock should be a “secular winner.”
“They’re going to wipe out the competition with the exception of Amazon," said Cramer.
Related Link: Cramer Gives Price Target For Ford And General Electric
Cramer on Home Depot: Cramer said housing stocks peaked when Pfizer Inc (NYSE:PFE) COVID-19 vaccine results came out.
“This is Moderna, Pfizer,” Cramer said on both Home Depot and Walmart falling on strong earnings.
Cramer said it was a little bit tougher to own Home Depot here compared to Walmart. He said the company's strong growth makes it a good play for the future.
Price Action: Home Depot shares are down 2% to $273.87 in pre-market trading. Walmart shares are down 1% to $150.71.