Cramer's Morning Take: TJX Companies 2/28/24

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.

I've got to tell you, this is one of those days that I'm starting to feel is where we are. It's a drift down day, okay? We don't have oil and gas influencing us, we only have bonds influencing us, maybe tomorrow a PC deflator, but we're getting less overbought. And you said something to me earlier today that people should know.

I said, well, the oscillator, what is it? It's one, and you said basically what? That it's not as indicative. Don't make that judgment.

Jeff Marks (0:32)

Well, it just hasn't come into play, I would say, over the last couple of months. We were overbought for a little bit towards the end of the year, coming into 24 Haven't really seen an oversold yet because it really hasn't been a pullback in the market yet.

Jim Cramer (0:46)

I just thought it was worth noting that, because we had Bill Paul at the conference and he's sensational from a market. The product is a great product, but unless the oscillator goes into extremes, it's not played a role in trying to pitch stocks.

Jeff Marks (1:01)

Yep, good point.

But there are some earnings coming out today, most importantly for us, TJX earnings this morning.

Very strong quarter, $1.22. They earned versus $1.12 expectations. Well above guidance, by the way. They guided $97 to $1. Comp sales up 5%, the estimate was 4.3. Driven by transactions, which is good.

Jim Cramer (1:22)

Which is good, that means not jacking up price.

By the way, that is not their style to jack up price. They're a price cutter.

Jeff Marks (1:29)

No, absolutely, good value in their stores. Right, transactions mean traffic. That's the synonym there. Margin's good, every concept delivered positive cons.

Jim Cramer (1:38)

Oh, and you talked about the home goods blowout. I think you call it a blowout.

Jeff Marks (1:42)

Up 7%, which is really strong, especially considering how weak the housing market has been.

Jim Cramer (1:47)

But you should go into, we know that there's a path, and then this happens, and a lot of people don't really do a lot of their homework, and they sell.

And tomorrow, we're going to have probably 8 analysts, and they're all going to raise their price targets. So that's the second day move that we saw in Logos Corp, and we saw the second day in Home Depot, and that has been the important day.

Jeff Marks (2:06)

Yeah, you can't be deterred by guidance, which was a little bit lighter than expectations, but very conservative. I mentioned right at the beginning what they guided to and what they actually earned in the quarter. That's just the TJX way. They guide conservatively, then they beat the numbers handily.

Jim Cramer (2:22)

This is a life, I'm going to do a piece tonight, I think, on my new huddle, the life cycle of an earnings beat, which starts with these really bad headlines that are all done, by the way, by computers.

Start your day with my outlook on the market every morning. Visit cnbc.com/morningtake to become a CNBC Investing Club member at a special rate today.

SPEAKER_3 (2:48)

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