Jim Cramer discussed the diverging stock performance of Ross Stores and TJX Companies on August 17th, attributing Ross Stores' 30% year-to-date gain to CEO Jim Conroy while lamenting TJX's 8.9% decline despite strong company performance. TJX shares fell 4.2% on August 19th after fiscal Q2 earnings showed 4% comparable same-store sales growth and raised full-year profit margin guidance to 11.2% and EPS to $4.09 to $4.13, but Q3 margin guidance of 11.8% to 11.9% and missed Q3 EPS and same-store sales estimates sparked concerns about shipping costs and wages. Ross Stores shares rose 4.4% on August 21st after beating revenue and earnings by a wide margin, growing operating profit excluding tariff refunds, posting 10% comparable store sales growth, and raising full-year earnings guidance. Both stocks trade at high forward P/E multiples—27 for TJX and 29.76 for Ross—leaving little room for error, and Ross has a higher short interest at 3.53% of float versus TJX's 1.76%.
Ross Stores IncRoss Stores beat revenue and earnings estimates, raised full-year guidance, and posted strong comparable sales growth.
The TJX Companies IncTJX missed Q3 EPS and same-store sales estimates, with concerns about shipping costs and wages despite raising full-year guidance.
Walmart Inc.