9 Stocks on Jim Cramer’s Radar

6. Ralph Lauren Corporation (NYSE:RL)

Number of Hedge Fund Holders: 43

Cramer expressed confidence in Ralph Lauren Corporation (NYSE:RL) on March 13, citing its strong performance as seen in its quarterly report, with better-than-expected growth across all regions, improved gross margins, and a 12% increase in same-store sales globally for its direct-to-consumer business. He added:

“Plus it doesn’t hurt that direct-to-consumer with its great gross margins makes up two-thirds of the business. So what was driving the stellar growth? The good news is it’s all about Ralph Lauren’s core products and their classics… Pretty extraordinary. These core products make up more than 70% of the business… Of course, you could argue that none of this matters anymore.

Ralph Lauren’s latest quarter took place in a totally different world, one where we weren’t worried about trade wars and plummeting consumer confidence… certainly true but it’s also why the stock has just fallen 25% over a month’s time. It’s on sale, not the goods, the stock. Don’t forget, on the latest conference call, management noted they currently anticipate a minimal annual impact from tariffs. Although again, that was before things started spiraling out of control. Still, I believe Ralph Lauren’s much more likely to make a comeback than your average retail stock.”

Ralph Lauren (NYSE:RL) is a renowned designer, marketer, and distributor of lifestyle products such as clothing, home goods, and accessories.