Jim Cramer Put These 7 Stocks Under the Microscope

5. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 73

The TJX Companies, Inc. (NYSE:TJX) is one of the stocks Jim Cramer put under the microscope. Cramer called it the highest quality operator in the space, as he remarked:

“Which represents the best value? Given that these are retailers, why don’t we start with the same store sales? That is the key retail metric… TJX… led the way. First half same store sales growth of 4%, which is really miraculous… As club members know well, we own it for the Charitable Trust. But with accelerating revenue growth in all four of its divisions along with healthy gross margin expansion, it is easy to see why the stock’s traded up after earnings…

Now that we know how all three off-price apparel companies are doing, what about paying for numbers?…

Alright, in terms of cheapness, Ross Stores leads the way, trading just 22 times next year’s earnings estimates. That is very cheap, much cheaper than Burlington at 25 and then TJX at roughly 28 times next year’s numbers… TJX is… truly expensive, 2.7, but there’s a reason. TJX investors are willing to pay up for quality. TJX is the highest quality operator in this space. I gotta tell you, I have liked this story literally since 1987… TJX repurchased $1.1 billion worth their own shares in the first quarter, followed by another $500 million in buybacks in the second. Management says they expect to repurchase somewhere between 2 to $2.5 billion worth of stock for the current fiscal year. That’s not too shabby…

Subjective, but arguably the most important differentiator. Here, I gotta give the edge again to TJX. Again, that won’t surprise people… This is a key reason that TJX has had the strongest same-store sales performance so far this year and why they’re able to offer what people call the treasure hunt experience that I know I love; they have the best merchandise. It’s why I always urge club members to buy some more TJX whenever it’s down and to go to TJX, so you know why I like it so much.”

The TJX Companies, Inc. (NYSE:TJX) is an off-price retailer providing apparel, footwear, accessories, home fashions, furniture, décor, and seasonal merchandise through its stores and e-commerce platforms.