Joe Terranova TJX Companies TJX-N BUY Aug 21, 2024

They report next Wednesday, an important day. The street expects comp sales at 2.7%. Q2 saw a lot of gifting events--Mother's and Father's Days. He expects a strong report.

Earnings beat and an excellent report, but guidance was conservative, and he expects TJX will beat it. They're in the sweet spot as off-price consumer goods are doing well. TJX has replaced Target in retail in consumer discretionary.

He sold a March covered all, $125 strike, expiring March 14. He loved their blow out quarter with 5% same store sales growth and raised the dividend by 13%.

Will survive this tariff war, TJX will thrive with excess inventory from suppliers.

Loves it. Will do well in a recession. Consumers are loyal.

Have totally sidestepped the tariffs, seeing momentum and fundamentals are great.

Off-price retail is in the sweet spot now, and TJX is the best at it. They reported beats and raised full-year outlook. They can avoid tariffs. Are seeing margin expansion.

They don't pay tariffs on their goods. Rather, the initial importers in the US pay.

Pretty cautious on consumer names, since we're about mid-late cycle economically. Interest rates coming down might help the consumer. In the consumer space, he'd prefer a name like this. Downshift in spending going on now.