We’re Accumulating More Shares of This Oversold Holding
We continue to see consumer pressure providing a tailwind moving into the holiday shopping season.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
| TJX | Buy | 183 | 134.55 | 1,605 | 3.4 |
After you receive this alert, the Portfolio will buy 183 shares of TJX Companies (TJX) at or near $134.50. Following the trade, we will own 1,605 TJX shares, accounting for roughly 3.4% of the Pro Portfolio’s assets.
When we added to the Portfolio’s position in TJX on August 19, our bite size was purposely smaller to leave us some wiggle room in case the shares moved lower as more retailers reported their quarterly results. And that’s what has happened in the ensuing days, with TJX falling to below $135 from the $146 level of our recent pickup.
That continued decline in the shares, based on their RSI figure near 21, has pushed TJX into a deeply oversold condition. At the same time, the comments we shared earlier today on U.S corporate profits and employee wages, plus those from Fed Chair Kevin Warsh about underlying inflation being sticky, point to a high probability consumers will continue to flock to off-price retailers and warehouse clubs like they did for the three-month period ending in July 2026. Should we see the Fed deliver a September rate hike, a scenario that, as of now, seems more than likely, that will bring another reason for consumers to embrace off-price and warehouse retailers.
As we step up the Portfolio’s exposure to TJX, we will reset our checkpoint level to $120. Given the deeply oversold condition, that should give us a wide enough berth, and we’ll look to revise that checkpoint level higher as TJX shares recover.
Following the trade, the Portfolio’s cash position will be around 7%. We’ve discussed levels we’re watching for several holdings, and that means we will also be contemplating prudent moves to increase our cash position. Whether or not this is a reduction across a few holdings or the winding down of one position in favor of others with superior prospects will be a game-time decision.
And a quick reminder that the Portfolio’s August Monthly Roundup will be published on Monday, August 31, rather than later today.
More Pro Portfolio:
- Selling Palantir at a Big Profit to Increase Our Cash on Hand
- We’re Tracking 23 New Signals Across Our Investing Themes
- Weekly Roundup: Geopolitics Wins Out, But Portfolio Continues to Outperform
(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade’s executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro Portfolio was long TJX.
