On September 17, a caller asked when to buy more The TJX Companies, Inc. (NYSE:TJX) using pyramiding after purchasing shares at $143 and adding more at $125. In response, Mad Money host Jim Cramer said:
Alright, great question. We pulled the trigger for this after Jeff Marks and I talked today. I think that what you would do right here, because the stock is down so badly from its high; it was at $170. Now, it’s down to $126, $123, and $120, buyer, buyer… We started shortening and lowering our gaps between each buy because it’s too cheap. It sells at a market multiple at last.
Previously, Cramer questioned TJX after Marmaxx stumbled.
Comparable Sales Growth And Expansion Across Core Retail Banners
The TJX Companies, Inc. reported strong financial results for its second quarter of fiscal 2027, with total revenue reaching $15.2 billion and beating consensus estimates by $20 million. Consolidated comparable sales rose 4% year-over-year, driven by higher average baskets and increased customer transactions across major divisions. HomeGoods stood out with a 7% jump in comparable sales, while international operations delivered similar 7% growth. Management also raised its full-year profit guidance and expanded its long-term store growth potential by 500 stores to 7,500 locations, highlighting sustained consumer demand for off-price retail value.
Margin Headwinds And Slower Growth Expectations For The Second Half
Despite the top-line beat, parts of The TJX Companies, Inc. faced near-term friction as Marmaxx comparable sales rose by only 1%. Adjusted SG&A expenses worsened slightly by 20 basis points year over year due to rising store wages and payroll costs. Furthermore, management guidance for the second half points to a moderation in sales and lower sequential margin expansion. Trading near $127 after pulling back sharply from its 52-week high of $170, the stock highlights investor hesitation regarding rising operational costs and potential deceleration in consumer discretionary spending.
Smart Money Backing And Bearish Float Dynamics
According to Insider Monkey tracking data, 80 hedge funds held positions in the company during the second quarter, down from 83 funds in the prior quarter. At the same time, short interest accounts for 1.98% of the public float, highlighting limited bearish positioning among short sellers.
With The TJX Companies, Inc. stock trading at around $127 (at the time of writing), down from its prior peak of $170, while generating $15.2 billion in quarterly revenue, the recent valuation compression could offer a compelling entry point for long-term investors looking to build a position in a dominant off-price retailer before consumer demand normalizes further.
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