CNBC’s Jim Cramer said Wednesday that T.J. Maxx owner TJX is the “best there is right now” in the out-of-favor retail industry. He was far less complimentary of Target . Cramer’s comments came after the companies reported much different earnings stories before the opening bell on Wall Street. TJX — which also owns the Marshalls and HomeGoods chains – delivered better-than-expected profit and revenue for the third quarter. CEO Ernie Herrman said the holiday shopping season is off to a “strong start.” TJX shares bolted out of the gate to an all-time intraday high before the rally lost some steam. The stock has gained roughly 22% year to date compared to the S & P 500 ‘s nearly 14% gain. Cramer praised TJX’s ability to deliver “very good value” at a time when consumers remain highly price sensitive. “Anyone who goes to these stores says, ‘You can’t believe the prices,'” adding that TJX’s current business setup has a “2019 feel,” a reference to the pre-Covid retail environment when traffic and demand were stronger and more predictable. “I go there for the holidays and everyone thinks I’m going to a really expensive store,” Cramer said. That operational strength is showing up in TJX’s market leadership. The company, whose stock is a holding in the CNBC Investing Club portfolio, now carries a roughly $160 billion market capitalization, quadruple the size of Target’s $40 billion valuation. TJX TGT YTD mountain TJX vs. Target year-to-date performance On Wednesday morning, Target posted a third-quarter sales decline and cut the top end of its full-year earnings guidance. The retailer has reported five consecutive quarters of same-store sales declines. The stock has lost 32% so far this year. Incoming CEO Michael Fiddelke has not gotten the chance yet to put his stamp on Target. Fiddelke, who is Target’s chief operating officer and former chief financial officer, will step into the CEO role on Feb. 1. The company announced in August that he would succeed longtime CEO Brian Cornell . On the earnings call, Fiddelke declined to say when he thinks the company’s sales would turn positive again, but said Target is making progress. Cramer said Target’s commentary was not what he wanted to hear, noting the company is still working through operational challenges and has yet to reflect Fiddelke’s vision. Cramer added that Target stores “have been underinvested in” and management needs to put more money into sprucing up the stores to reclaim the strength that once drove the brand. For now, Cramer made it clear: TJX is executing at a level that the rest of retail needs to catch up to.
