We're making 3 trades to adjust our consumer exposure after an analyst downgrade

Skip Navigation Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu 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 those shares back in mid-October as the stock rallied back to roughly $145. At the time of that sale, we said we believed TJX had quickly addressed its internal issues. We'll see if the company has turned it around when it reports earnings next Wednesday, but we cannot downplay the fact that Ross Stores is taking share from its off-price peers. Gordon Haskett's downgrade included analysis that showed traffic trends at a subset of co-located Ross Stores and Marmaxx locations continue to skew in favor of Ross. Haskett's work also showed that the share gains Marmaxx has been taking from Target over the past few years may be "flatlining" due to Target's improvement efforts. While this is just one analyst's view, we don't want to find ourselves owning too much TJX and risking our big gains heading into earnings if Marmaxx delivers another disappointing quarter. From this sale, we will realize an average gain of about 113% on stock bought in August 2022 and March 2023. We'll take the funds raised from the TJX sale and allocate them relatively evenly between Kimberly-Clark and beer maker Constellation Brands. Now that the Kenvue deal has closed, we believe the market is underappreciating Kimberly Clark's ability to turn around the consumer health brand. The company posted better-than-feared quarterly results last week. We initiated a position in Constellation Brands earlier this week, citing improvements in its beer sales and potential benefits from an easing of immigration policies following the Democrats' midterm election wins. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. We're booking profits in a rallying defensive stock that we still really like Jeff Marks We're adding a consumer stock to diversify beyond the volatile AI trade Jeff Marks We're booking profits in a stock to reduce our data center exposure Jeff Marks Read More