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According to The Street’s Jim Cramer, if you have been listening to those who have already written an elegy for the retail sector, you have been listening to the wrong people.

Cramer, along with Bob Lang of Trifecta Stock, laid out a strong argument for a healthy stock market led by an equally healthy retail sector. The duo also named specific stocks they like in retail.


Best Buy Co. Inc. (NYSE:BBYC)

Best Buy reported strong quarterly results Tuesday and closed up 19.6% at $39.23 on volume of more than 40 million shares.

Mostly the company showed it won’t go down (to Amazon.com Inc. (NASDAQ:AMZNC)) without a fight. Best Buy said its U.S. online sales grew 23.7% in Q2, the second straight quarter of nearly 24% growth.

Nike Inc. (NYSE:NKEC)

About Nike, Cramer told viewers, "Here's a stock that had been in the dog house, going relentlessly lower from mid-March through late June as the shutdown of Sports Authority, one of their major U.S. distributors, caused a real hiccup in the business."

Then he added that the company reported a healthy quarter at the end of June and since then the stock has been inching up. As Cramer also noted, the Rio Olympics, which functioned pretty much as one continuous Nike ad did the company no harm. Nike stock closed Tuesday up 1.64% or $0.96 at $59.62 on volume of 8.2 million shares.

Nordstrom Inc. (NYSE:JWNB)

Cramer and Lang believe Nordstrom is in the middle of what they call a “bullish pennant pattern” in which the stock rises, creating a flagpole, then goes sideways to form the pennant.

This suggests, says Cramer that the company is digesting recent gains. Once that is complete, he says, the pattern will repeat at a higher level.

InvestorPlace is also bullish on Nordstrom, pointing to the fact JWN stock has broken its downward trend and is, IP believes, ready to make a run up to resistance just south of $60. Nordstrom closed Tuesday up 1.44% at $52.89 on volume of 2.47 million shares.


Gap Inc. Inc. (NYSE:GPSC)

Finally, Gap Inc., which hit bottom in May has also been working its way higher, Cramer says. Although the company last week reported an in-line quarter and cut guidance that reality doesn’t comport with the chart according to Cramer.

That said, select analyst reaction has been a mixture with Wedbush maintaining its Neutral rating and increasing its PT from $20 to $25. Deutsche Bank maintained a Sell rating with an $18 price target. Jefferies reiterated its Buy rating and raised its PT from $26 to $30. Gap Inc. stock closed Tuesday at $26.99, up 0.48% on volume of 4.9 million shares.

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