Jim Cramer Says These 4 Retail Stocks Have ‘Room To Run’

The charts for these 4 stocks point to more upside on the horizon. 

Retire in 18 months with $2.4 million?

37 year old trader uses this “unconventional” strategy to turn $10K into $2.4 million in only 18 months. Another trader turned $5K into $15 million and still another turned $30K into $80 million. Click here to discover their millionaire maker strategy. [ad]

Read More


All anyone will be talking about in the retail space this coming week will be Amazon’s (NASDAQ: AMZN) Prime Day, the 36 hour mega sale on everything from electronics to home goods to clothes, and even food, beginning on Monday.

But while Amazon is the most dominant name in the retail space right now, CNBC’s Jim Cramer says there’s a new breed of niche players in the space that are worth keeping an eye on.

Big names like Costco (NASDAQ: COST), Target (NYSE: TGT), and Walmart (NYSE: WMT) have gone to bat in the battle against Amazon, but Cramer says smaller names like Etsy (NASDAQ: ETSY), LuluLemon (NASDAQ: LULU), Pinterest (NYSE: PINS), and Stitch Fix (NASDAQ: SFIX) are carving out their own spaces within the industry.

“In a retail environment dominated by a handful of players that we all know … there are smaller operators that we have found ways to like and win with,” Cramer said. “The charts … suggest that all four could have more room to run.”

Cramer discussed the charts of all four stocks as analyzed by technician Tim Collins from RealMoney.com. 

First up was Etsy. The stock is up nearly 37% so far this year and jumped roughly 5% on Tuesday after launching a new free shipping program. 

The chart shows that the stock has consolidated over the past four months, and according to Cramer, that could mean the stock is headed higher.

Source: CNBC.

“A stock that’s spent four months consolidating… [is like] a coiled spring, which is how you get the kind of magnificent rally we had [Tuesday] on really very little news,” Cramer said, noting that the stock has been stuck in an ascending triangle formation with a support at $61 and resistance at $70.

While Collins believes it could take a few attempts to push past that $70 resistance level, the stock is headed for more upside.

“When it comes to Etsy, the stochastic just made what we call a bullish crossover… and that is a very bullish signal that we have learned time and again is a great way to try to predict moves,” Cramer said. 

Moving on to LuluLemon, Collins’ analysis points to a major rally for the athletic wear maker.

Source: CNBC.

LuluLemon posted 14% same-store sales growth in its most recent quarter, and Cramer says that Collins’ analysis showed a bullish crossover indicator, which the chartist says has historically helped the stock run higher.

The stock is currently trading at $183, as of Thursday’s close, but “Collins thinks it can pole vault over $200,” Cramer said. Such a jump would see the stock at least 9% higher on top of LULU’s 50.5% gain so far this year.

But investors beware, “if LULU pulls back below its floor of support at around $175 to $180, he thinks maybe you should throw in the towel, as this chart could quickly morph into a bearish head and shoulders pattern,” Cramer warned.

On to Pinterest. While this stock isn’t a retailer, the vision board social media platform has the potential to compete with a juggernaut like Amazon in the future.

Since it made its public debut in April, the stock has traded in tight range between $25 and $29. 

Source: CNBC.

“If Pinterest can climb above $28.50, Collins believes it will be smooth sailing to the $30s,” Cramer said. But if the stock falls below $25.50, “it might sink to $23.50. But get this: it bottomed in May. Collins says he’d be a buyer if that happens.”

Last, but not least, Cramer discussed digital personal styling service, Stitch Fix.

Stitch Fix hasn’t been an easy stock to own in the two-and-a-half years it has been publicly traded. The stock debuted at $16.90 in November 2017 and jumped 210% to a high of $52 in less than a year before falling below the IPO price to $16.05 just four months later in December 2018. The stock has since recovered to $28 and is up nearly 65% so far this year. 

In June, the company reported a strong quarter which pushed the stock up $4 to $27 in just one session. Shares continued to rally before cooling off over the last couple of weeks, producing a bullish flag pattern, according to Cramer and Collins. Such a pattern points to a move higher.

Source: CNBC.

“Collins recommends buying it right here,” Cramer said, noting that Collins believes the stock has support at $29 and could jump as high as $40 if it can break through the resistance at $32.

“Bear in mind, Stitch Fix could keep bouncing around in this flag pattern for another few weeks,” Cramer said. “[Collins] suggests buying half your position now, and then putting on the other half after a breakout above $32. I get where he’s coming from.”

Of the four stocks, analysts are most bullish on Stitch Fix and Pinterest, and their average price targets for these stocks suggest possible upside of 27% and 15%, respectively. 

There are risks inherent in all investments, which may make such investments unsuitable for certain persons. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. You may lose all of your money trading and investing. Do NOT enter any trade without fully understanding the worst-case scenarios of that trade. And do NOT trade with money you cannot afford to lose. Past performance of an investment is not necessarily indicative of its future results. No assurance can be given that any implied recommendation will be profitable or will not be subject to losses. Information provided by the Company is not investment advice. The Company is not a registered investment adviser, stock broker, or brokerage. You agree that the Company does not represent, warrant, or take responsibility that any account will or is likely to achieve profit or losses similar to those shown. Examples published by the Company are selected for illustrative purposes only. They are not typical and do not represent the typical results of all stocks within the Company’s software or its individual scans and searches. No independent party has audited any hypothetical performance contained at this Web site, nor has any independent party undertaken to confirm that they reflect the trading method under the assumptions or conditions specified.