We are making three trades on Friday: We're selling 475 shares of TJX Companies at roughly $135, leaving Jim Cramer's Charitable Trust with 500 shares of TJX and decreasing its weighting to about 1.8% from 3.4%. We're buying 300 shares of Kimberly Clark at roughly $108. After the trade, the trust will own 900 shares, increasing its weighting to about 2.5% from 1.65%. We're buying 220 shares of Constellation Brands at roughly $145, increasing our STZ position in the portfolio to 490 shares and its weighting to 1.8% from 1%. We're adjusting our consumer exposure after Gordon Haskett downgraded TJX shares to hold with a $130 price target on Friday. The firm cited continued competitive pressure from Ross Stores and lingering execution issues at Marmaxx, TJX's largest segment, which includes TJ Maxx and Marshalls chains. Those issues weighed on the segment's second-quarter results . We bought TJX shares several times as the stock fell from $140 to the $120s in September, thinking the market was overreacting to a rare execution issue at such a well-run company. We sold most of…
We're making 3 trades to adjust our consumer exposure after an analyst downgrade
In short
The trust trimmed its TJX Companies weighting from 3.4% down to approximately 1.8% to protect accumulated profits against potential quarterly weakness. The sale of 475 shares funded purchases in Kimberly-Clark and Constellation Brands, raising their portfolio allocations to roughly 2.5% and 1.8% respectively. Reinvestment into Kimberly-Clark was driven by better-than-feared financial results alongside turnaround prospects linked to the Kenvue transaction. Constellation Brands also received fresh capital due to improving beer sales and anticipated policy tailwinds.
Key points
- Heightened competitive pressure on Marmaxx prompted the portfolio to secure substantial g…: Heightened competitive pressure on Marmaxx prompted the portfolio to secure substantial gains before upcoming quarterly earnings.
- Kimberly-Clark is viewed favorably following resilient operating results and operational…: Kimberly-Clark is viewed favorably following resilient operating results and operational upside from closing its Kenvue deal.
- Constellation Brands stands to benefit from stabilizing domestic beer demand alongside ex…: Constellation Brands stands to benefit from stabilizing domestic beer demand alongside expectations for easing immigration policies.