Buy The TJX Companies, Inc. (TJX) Over Kohl's, Says Jim Cramer

We recently published 12 Stocks Jim Cramer Discussed As He Said SpaceX’s Starlink Internet Could Help President Trump. The TJX Companies, Inc. (NYSE:TJX) is one of the stocks Jim Cramer recently discussed.

The TJX Companies, Inc. (NYSE:TJX) is an American off-price retailer whose shares have gained 13% year-to-date. The firm’s off-price business model has helped it stay resilient this year as the retail sector as a whole continues to struggle. For instance, The TJX Companies, Inc. (NYSE:TJX)’s shares gained 2.7% earlier this month after the firm’s second-quarter revenue and earnings per share beat analyst estimates. Investors were particularly impressed by the fact that The TJX Companies, Inc. (NYSE:TJX) raised its full-year per-share profit guidance to $4.52 and $4.57, which was higher than analyst estimates of $4.51. Cramer’s previous remarks about the firm have praised it and revealed that he owns it for the charitable trust. Here are his recent thoughts:

“Kohl’s, I don’t know, I mean this is one, you can say, clock is right twice a day, but I will tell you, they did say, they saw resilience with customers. Does have a new CEO. I’ve seen a lot of good things happening, but I don’t want to jump all over it because in the end it is brick and mortar, I’d rather be in TJX.”

The CNBC TV host discussed The TJX Companies, Inc. (NYSE:TJX) in detail after its earnings. Here is what he said:

“I like this one so much, we have a big position for the Charitable Trust. It’s been a phenomenal long-term performer… When TJX actually reported Wednesday morning, they delivered a gem of a quarter, though, enough to send the stock up more than three and a half bucks… With this latest quarter, TJX has now exceeded the high end of its own quarterly earnings guidance for 10 straight quarters…

So when the guidance for the current quarter once again came in light, everybody realized this management’s simply sandbagging us with low-ball numbers. Sometimes, though, the business looks so good that even this cautious management has to raise numbers across the board, and this was one of those times…

So let me give you the bottom line: … This is an excellent outcome for TJX and a vindication for everyone else who’s defending the stock all summer, including me and my compadres of the CNBC Investing Club… Considering the facts on the ground in retail, everything from the tariffs to an incredibly value-conscious consumer, I’m betting TJX has more to run. I wouldn’t be surprised if this stock becomes a semi-permanent resident of the new high list for the rest of the year.”

While we acknowledge the potential of TJX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.