We're booking profits in this off-price retailer, as the stock continues to gain

Published Mon, Aug 14 202312:19 PM EDT

We are selling 75 shares of TJX Companies (TJX) on Monday, at roughly $86.81 each. Following the trade, Jim Cramer's Charitable Trust will own 800 shares of TJX, decreasing its weighting in the portfolio to 2.42% from 2.64%. Shares of TJX Companies are up roughly 1% Monday and hovering around all-time highs, even as 2023 has proven to be an inconsistent year for this best-of-breed off-price retailer. The year started with promise when TJX stock hit a 52-week high in early January. But shares soon after gave back gains, with the stock down about 7% for the year by mid-March amid multiple regional-bank failures. We swiftly added to our existing position into the teeth of a sharp pre-market selloff — violating our low-cost basis — and have been rewarded by an 18% rally ever since. The company has continued to see strong momentum in its flagship T.J. Maxx and Marshalls stores, while some margin headwinds like freight expenses have finally started to ease. TJX shares are now up nearly 9% for the year. And given we have yet to book any profits in our position, our discipline says to take some shares off the table. We're also downgrading our rating to a 2, meaning we would need to see the stock pull back further before buying up more shares. After Monday's trade, we'll realize a gain of 34% on shares first purchased in August 2022. Notably, Monday's sale isn't a call on TJX's upcoming quarterly results. The company is scheduled to report earnings Wednesday before the market opens and it's likely to deliver a solid second quarter — the result of a favorable off-price buying environment coupled with the consistent appeal of TJX's stores to value-seeking customers. We will reevaluate our $88-per-share price target on TXJ following the quarterly results. (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.

Customers shop at a T.J. Maxx store in Washington.

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