Cramer Sees 'Sweet Vindication' For Walmart Investors, Lazarus-Like Nordstrom Comeback

Retail earnings make it clear there are at least two "resurrection stories," according to CNBC's Jim Cramer.

Walmart: Not Too Late To Buy

Shares of Walmart Inc WMT soared last week, as CEO Doug McMillon's turnaround plan continues to show momentum despite being in its third year, Cramer said during his daily "Mad Money" show Monday. While there have been some bumps in the road, including February's earnings miss, McMillon insisted growth would pick up again, Cramer said. 

Thursday's earnings report is "sweet vindication" for investors who believed in Walmart, the CNBC host said. The numbers speak for themselves, including a 40-percent rise in online sales, which makes Walmart "probably the only retailer with [the] scale" to challenge Amazon.com, Inc. AMZN, he said. 

Walmart's stock is trading at 19 times next year's earnings estimates, which is a notable discount to fellow retailer Costco Wholesale Corporation COST, which trades at 29 times next year's estimates, Cramer said. Walmart's stock is only starting to bridge the gap with rival retailers, but if growth continues to accelerate, it will command even higher earnings multiples, he said. 

"I think this $96 stock can go to $115 or $120 in the not-too-distant future," Cramer said. "Meaning, Walmart stock is still a buy."

Nordstrom: The 'Right Call' Was Made

Walmart isn't the only "miraculous retail resurrection" story, as Nordstrom, Inc. JWN's Friday earnings report was akin to a "rise from the grave like Lazarus," Cramer said during his "Mad Money" show.

Nordstrom shares spiked more than 10 percent after the Q2 print. Similar to Walmart, the numbers speak for themselves, as same-store sales grew by 4 percent and management lifted its full-year guidance across nearly every metric.

Nordstrom's success can also be attributed to a strategy over the years of spending a "fortune to upgrade everything," Cramer said. Friday's report shows this was the "right call," he said. 

"I think we're looking at a wave of upgrades, which tend to push stocks higher." 

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