Jim Cramer advises keeping an eye on these 9 undervalued retail stocks.

• On Friday, CNBC's Jim Cramer suggested nine discounted retail stocks that could be beneficial for investors' portfolios.
• The "Mad Money" host stated that while many discounted retailers had a nice rally today, it would take several more days like this for their stocks to become expensive again. As a result, he recommended giving any one of these a look.

On Friday, CNBC's Jim Cramer suggested nine discounted retail stocks that could be beneficial for investors' portfolios.

The "Mad Money" host stated that while many discounted retailers had a nice rally today, it would take several more days like this for their stocks to become expensive again. As a result, he recommended giving any one of these a look.

On Friday, the Dow Jones Industrial Average rose 0.4%, the S&P 500 fell 0.27%, and the Nasdaq Composite plummeted 1.34%. Cramer's comments followed these market movements.

Cramer began by compiling a comprehensive list of all retailers in the S&P 500, S&P Mid-Cap 400, and S&P Small Cap 600 before excluding any companies with a market cap below $1 billion.

He removed the names of stocks with a price-to-earnings ratio greater than 10 and also dismissed those with no P/E ratio and anticipated losses this year.

Cramer narrowed down the list of companies to those that met specific criteria.

• Does not have a debt to EBITDA ratio over three
• This year, the company does not anticipate a decline in earnings of more than 20% compared to the previous year.
• Did not miss the numbers when reporting their first quarter results
• Does not have a dividend yield under 1%

Here is the list of nine retail companies that fit the bill:

Disclosure: Cramer’s Charitable Trust owns shares of American Eagle Outfitters.

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