Stock market continued to record losses on Friday after a choppy trading session. S&P 500 and NASDAQ both fell 1.5% to 3,586 and 10,576, respectively.
An inflation report showed that prices climbed more than expected in August, with personal consumption rose 0.4%.
Tweet of the Day
More than likely this is the best time in 2 years to buy stocks and the heavy majority feels the exact opposite right now they want no stocks and more cash pic.twitter.com/teHJAmUQ8S
— nextbigtrade (@nextbigtrade) September 30, 2022
Meanwhile, TJX Companies (TJX) was holding up well even though retail apparel is in a recession.
Chart of the Day
Our chart of the day is the one-year chart of TJX as of September 23, 2022, when the stock was at $61.
TJX is the largest major international off-price retailer in the world. The company offers a rapidly changing assortment of quality brand name and designer merchandise that is 20% to 60% below full-price retailers.
TJX was seeing a marketplace flush with off-price buying opportunities for high quality brands, due to the recession. Just today Nike (NKE) reported earnings with inventory up 44% from a year ago. NKE management plans to aggressively clear this inventory, some of which will likely go to TJ Maxx and Marshalls.
TJX. This company will pick up the excess sportswear at discount prices.
TJ Maxx and Marshalls stores will be flooded with nice clothes at cheap prices.
Also, notice this stock already bottomed back in May. I’m seeing lots of stocks that are building nice bases and are looking to head higher. TJX is one of them.
– David Sharek, Founder of The School of Hard Stocks
Note that during the past decade this stock often had median P/E between 19 and 21. Thus, his Fair Value is a P/E of 20.
TJX is part of the Conservative Growth Portfolio.