We're buying more shares of this retailer as stocks point to an ugly open

Published Wed, Mar 15 20239:17 AM EDT

Shortly after the opening bell Wednesday, we will buy 75 shares of TJX Companies (TJX) at roughly $73.50. Following today's trade, Jim Cramer's Charitable Trust will own 875 shares of TJX, increasing its weighting in the portfolio to about 2.57% from 2.36%. Markets are pointing to a sharply lower open Wednesday, with the S & P 500 sliding 1.75% in premarket trading. There was optimism Tuesday that the crisis of confidence in the regional banks had turned for the better after various government agencies stepped in to cushion the blow from the collapse of Silicon Valley Bank and Signature Bank. But jitters have emerged in Europe, where banking stocks are getting crushed this morning on concerns about the health of Credit Suisse, a globally systemically important bank (G-SIB). U.S. market futures were actually pretty calm early this morning up until Saudi National Bank, Credit Suisse's largest investor, said it would not provide more capital to the troubled bank. Saudi National Bank cited the regulatory challenges of increasing its stake above 10%, according to an interview with Bloomberg TV. This comment sparked a sell-off in Credit Suisse and many other European banks, and those fears spread into the U.S. market. A likely decline for U.S. stocks on Wednesday should push the market deeper into oversold territory after yesterday's -5.83% reading on the S & P Oscillator . That's despite the producer price index (PPI) for February being a nice surprise this morning, down 0.1% month over month in February compared to expectations of a 0.3% increase. We are looking for opportunities to put a little more cash to work. When a nasty sell-off in the futures market brings down the prices of everything, we like to separate what deserves to be down from what doesn't — and buy high-quality companies with great balance sheets and durable businesses. TJX YTD mountain TJX Companies (TJX) YTD performance That's what is drawing us to TJX Companies , the off-price retailer that appeals to consumers looking for a discount on quality merchandise. The company recently reported a solid quarter with earnings up 14% year over year and comparable sales at Marmaxx up 7% in the United States, indicating strong momentum at the Marshall's and TJ Maxx concepts. This trade is in violation of our low average cost basis of $63.32, but we view the stock's 6% decline year to date and roughly 10% pullback from its high as an opportunity to get bigger in this best of breed name. (Jim Cramer's Charitable Trust is long TJX. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Annapolis, Maryland, on May 16, 2022

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