We're snapping up this retail stock that has fallen 10% from its April high
We are buying 50 shares of TJX Companies at roughly $148. Following the trade, Jim Cramer's Charitable Trust will own 850 shares of TJX, increasing its weight in the portfolio to 3.2% from 3%. As discussed during our...
$4,200-$4,600 — Gold (GC) Where to settle in June?
An important development from the financial markets: We are buying 50 shares of TJX Companies at roughly $148. Following the trade, Jim Cramer's Charitable Trust will own 850 shares of TJX, increasing its weight in the portfolio to 3. As discussed during our Thursday and Friday morning meetings, we're adding to our position in the off-price retailer TJX Companies, parent of TJ Maxx, Marshalls, and HomeGoods.
Shares are trading well above our average cost basis of about $73. But we are willing to violate it given the stock has fallen 10% from its April high. Our general rule of thumb is that a 10% pullback in a high-quality company like TJX represents an opportunity to nibble on shares.
Economic Details
Rising inflation and gas prices may weigh on consumers over the next few months, but TJX should outperform the rest of retail and gain market share by catering to value seekers. Its stores offer a treasure hunt experience where you can find quality merchandise at discounted prices. The company reports earnings next Wednesday before the opening bell, and we're expecting another typical TJX quarter.
It has a strong track record of delivering transaction-driven low- to mid-single-digit same-store sales growth, with adjusted earnings per share above the high end of guidance. The company's outlook will likely be conservative relative to Street models, which could create some volatility around the print. But management likes to underpromise and overdeliver.
(Jim Cramer's Charitable Trust is long TJX. See here for a full list of the stocks. ) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Analyst Views
Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
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Financial markets are tracking the development closely as investors assess the likely impact.
