Jim Cramer's Mad Dash: ULTA
The company beat revenue and earnings expectations when it reported late Thursday but guidance was lower than expected, Cramer noted. Usually that would mean the stock would drop. But on Friday shares are up nearly 7%. Why? It reported comparable-store sales could be in the 5% to 7% range, which is very good, Cramer said.
"When anybody sees a comp-store [number] above 5%, they love the stock" he explained.
If investors didn't have a reason to like retail before, they do now. Cramer sees investors gravitating towards domestic retail stocks with 5% or higher comp-sales growth because this sector has "nothing to do with" events in Ukraine or China.
Cramer said investors should watch for a bounce in "domestic retail with good numbers and drug stocks" late Friday afternoon into Monday.