He also likes the potential of Deckers Outdoor (DECK), maker of UGG-brand footwear. Hendrickson's research shows that demand for its boots is holding up, despite concern that they are too pricey for the current economic environment.

Buy - Price $129.68 on July 8
by Sterne Agee

Based on our recent channel checks, we believe that the initial shipments of fall 2008 UGG boots are selling through exceptionally well. Retailers with whom we have spoken report that the performance of the Metropolitan collection is leading the initial strong sales. The retailers we have spoken with who have seen the spring 2009 UGG product line are very positive about the strong women's offerings, and the narrow children's line. ... We are reiterating our BUY rating and our $185 price target. Market cap: $1.7 billion.

watching

Now, with the financials on the rise again, other sectors can follow. Cramer recommended Costco (COST), Deckers (DECK) and Black and Decker (BDK) saying retailers and the items they sell are buys.

I have liked Deckers ever since Oprah endorsed it a couple of years ago and reiterated her "buy" a couple of weeks ago. Deckers' Uggs remain in short supply.

"But his favorite stock of the bunch, Cramer said, is Deckers. The company, he said, is great at underpromising and overdelivering, has strong brands, and is enjoying significant growth in direct sales. Cramer called Deckers one of the rare growth stocks he'd embrace right now."

follow

sport sandal sales drive the business earnings up 94%

UGGZ

P/E is 40.3 and the PEG is 1.24.

Once bitten...

think boots are passe

stock priced for sustained growth i dont think they can deliver