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Cramer's Morning Take: TJX 5/22/24

Cramer praises this ‘bargain’ retailer after earnings beat. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake
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Duration:
4m
Broadcast on:
22 May 2024
Audio Format:
mp3

Cramer praises this ‘bargain’ retailer after earnings beat. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake  

CNBC Investing Club Disclaimer

What's on the horizon for financial markets? At PJIM, it's a question that over 1,400 investment professionals relentlessly research in pursuit of your long-term goals. Specialised across asset classes, but united in collaboration, our teams provide global and local expertise. Our investments shape tomorrow, today. Pursue your tomorrow with PJIM, a leading global asset manager. Hey, it's Kramer, and this is my morning take on the market from today's CBC Investing Club Morning Meeting. Well, you still have consumers looking for value that's pretty evident based off the TJX earnings today. How about that quarter? Yeah. I mean, look, REZR in line, but it was a nice earnings beat above the high end of guidance. That's clear when they're 3% comps, high end of guidance, again, driven all by transactions. So they're not doing it off of price, which you may see from some other consumer companies. But what do you think this happened? I mean, let's puzzle over this. Yeah. We've been dealing with a couple of quarters that when they report that have been a little viewed as being, let's say, the positives are ephemeral. This time it seems like the positives are for real. Well, I mentioned that they beat the high end of guidance on a number of different lines, so that when they give their Q2 guide and you see versus consensus, maybe it's a couple of pennies light on earnings, what you have to understand is that this is a company that sets their guidance conservatively, and then they beat even above the high end. They did say in the press release that the second quarter is off to a good start. The conference calls at 11, so we'll hear more there. But in terms of the stock coming into today, it was actually a laggard year to date. It was up around 4% or 5%. So now you're seeing a bit of a catch up move. We did buy a couple of weeks ago at 95, so a nice nimble there. I think that's what's playing out. It's a catch up move, but it's still in the right category. It's value, which is what people want at the end of the day. They raise the full year outlook too, so that's important because we saw a lot of companies this earnings season, maybe they beat, but they maintain, but no, this was a raise at both the low end and the high end margins better than expected. But remember, if you were for a bargain, TJ, Walmart, Costco, customer wants it, customer's enthusiastic about the bargain. Even with quality, right? Yes. I think that's key too, right? This isn't a, you know, it's not a dollar store. You can get some really quality stuff at a TJ. And yesterday, Tony Spring from Macy's talked about the haven have not Macy's, and it sounds like he's going to close 100 Macy's and Macy's has a lot of inventory that they can't take back and will end up here. So test, TJ has to have the kind of inventory you expect that you really want. The closing of stores is also a share for the taking as well, you know, given the overlap in some of the merchandise as you point out. Start your day with my outlook on the market every morning. Visit cbc.com/morningtake to become a CNBC investing club member at a special rate today. All opinions expressed by Jim Kramer on this podcast and in connection with the CNBC investing club are solely Kramer's opinions and do not reflect the opinions of CNBC, NBC, Universal, or their parent company or affiliates and may have been previously disseminated by Kramer on television, radio, internet or another medium. No specific outcome or profit is guaranteed in connection with your reliance upon or other use of the content from Kramer. The opinions offered in connection with this podcast and the CNBC investing club are not an attempt to induce any particular trading behavior, investment or strategy. You should be aware of the risk of loss in following any strategy or investment discussed in the content from Kramer. To view the full CNBC investing club disclaimer, please visit cnbc.com/investingclubdisclaimer. Earning your degree online doesn't mean you have to go about it alone. At Capella University, we're here to support you when you're ready. From enrollment counselors who get to know you and your goals, to academic coaches who can help you form a plan to stay on track, we care about your success and are dedicated to helping you pursue your goals. Going back to school is a big step, but having support at every step of your academic journey can make a big difference. Imagine your future differently at Capella.edu. [BLANK_AUDIO]