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

Jim Cramer (0:01)

Hey, it's Cramer, and this is my morning take on the market from today's CNBC Investing Club Morning Meeting.

Jeff Marks (0:08)

Well, you still have consumers looking for value. I think that's pretty evident based off the TJX earnings today.

Jim Cramer (0:14)

How about that quarter?

Jeff Marks (0:15)

Yeah, I mean, look, Ravs were in line, but it was a nice earning speed above the high end of guidance. That's clear, a clear win there. 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.

Jim Cramer (0:32)

But what do you think that this happened? I mean, let's puzzle over this. 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.

Jeff Marks (0:46)

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 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 call is 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 weeks ago at 95, so a nice nibble there, but 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 raised the full-year outlook, too.

So that's important, because we saw a lot of companies this earnings season. Maybe they beat, but they maintained, but no, this was a raise at both the low end and the high end. Margin's better than expected.

Jim Cramer (1:42)

Well, remember, if you offer a bargain, TJ, Walmart, Costco, the customer wants it. The customer's enthusiastic about the bargain.

Jeff Marks (1:52)

Bargain with quality, right?

Jim Cramer (1:53)

Yes, yes.

Jeff Marks (1:54)

I think that's key, too, right? This isn't a, you know, it's not a dollar store. No, I mean, you can get some really quality stuff at a TJ.

Jim Cramer (2:01)

And yesterday, Tony Spring from Macy's talked about the have and 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 TJX will have the kind of inventory you expect.

Jeff Marks (2:18)

And the closing of stores is also a share for the taking as well, given the overlap in some of the merchandise, as you point out.

Jim Cramer (2:29)

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SPEAKER_3 (2:43)

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