TJX (TJX - Free Report) closed at $153.46 in the latest trading session, marking a -1.25% move from the prior day. The stock's performance was behind the S&P 500's daily loss of 1.21%. On the other hand, the Dow registered a loss of 0.97%, and the technology-centric Nasdaq decreased by 2.15%.
The parent of T.J. Maxx, Marshalls and other stores's stock has dropped by 5.91% in the past month, falling short of the Retail-Wholesale sector's gain of 2.27% and the S&P 500's gain of 0.42%.
The investment community will be closely monitoring the performance of TJX in its forthcoming earnings report. The company's upcoming EPS is projected at $1.17, signifying a 6.36% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.12 billion, indicating a 5.02% upward movement from the same quarter last year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.17 per share and revenue of $63.9 billion, indicating changes of +9.3% and +5.85%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for TJX. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TJX presently features a Zacks Rank of #2 (Buy).
With respect to valuation, TJX is currently being traded at a Forward P/E ratio of 30.07. This represents no noticeable deviation compared to its industry average Forward P/E of 30.07.
It is also worth noting that TJX currently has a PEG ratio of 3.37. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TJX's industry had an average PEG ratio of 2.68 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
TJX (TJX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this parent of T.J. Maxx, Marshalls and other stores have returned -5.9%, compared to the Zacks S&P 500 composite's +0.4% change. During this period, the Zacks Retail - Discount Stores industry, which TJX falls in, has lost 1.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
TJX is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $5.17 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +9.7% from what TJX is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of TJX, the consensus sales estimate of $15.12 billion for the current quarter points to a year-over-year change of +5%. The $63.9 billion and $67.42 billion estimates for the current and next fiscal years indicate changes of +5.9% and +5.5%, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways U.S. retail sales rose 0.2% in June as online sales and easing energy costs supported spending.AMZN, FIVE, DLTR, TGT and TJX stand out for strong retail positions and online or value offerings. Lower inflation and resilient consumer spending could continue supporting the retail sector. U.S. retail sales grew in June, as energy costs eased and online sales surged. The retail sector has been making a steady rebound amid high inflation and ongoing geopolitical tensions. Despite these challenges, spending has remained resilient, boosting the sector.
Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Amazon.com, Inc. (AMZN - Free Report) , Five Below, Inc. (FIVE - Free Report) , Dollar Tree, Inc. (DLTR - Free Report) , Target Corporation (TGT - Free Report) and The TJX Companies, Inc. (TJX - Free Report) .
Retail Sales SurgeRetail sales rose 0.2% in June after increasing 1% in the prior month, the Commerce Department reported on Thursday. The rise came in line with analysts’ expectations. On a year-over-year basis, retail sales climbed 6.7%.
The monthly gain was the slowest in five months, yet the sector continued to perform well. One of the biggest boosts came from lower gasoline prices after tensions between the United States and Iran eased in mid-June. Receipts at gas stations fell 5.3% last month, after jumping 2.6% in May.
Receipts at auto dealerships rose 1.9% in June. Also, online retail sales rose 1.9% last month, driven by Amazon Prime Day sales.
Sales at electronics and appliance stores advanced 0.8% in June, while receipts at sporting goods, hobby, musical instrument and book stores rose an impressive 1.3%.
Higher prices due to high tariffs have been weighing on household budgets, but higher incomes are boosting spending. Also, impressive tax refunds this year have been helping consumers spend more freely.
The U.S. economy grew 2.1% in the first quarter. Also, inflation declined sharply in June after surging for three months. The consumer price index declined 0.4% month over month, surpassing analysts’ expectations of a decline of 0.2%. Year over year, CPI fell to 3.5% in June, beating analysts’ expectations of a reading of 3.8%.
The sudden decline in inflation has also raised hopes that the Federal Reserve could wait for a longer period before deciding on whether to hike interest rates. Lower interest rates are likely to boost the sector further.
5 Retail Stocks With UpsideAmazon.com, Inc.
Amazon.com, Inc. is one of the largest e-commerce providers, with sprawling operations in North America, now spreading across the globe. AMZN’s online retail business revolves around the Prime program, well-supported by the company’s massive distribution network. Further, the Whole Foods Market acquisition helped Amazon establish a footprint in the physical grocery supermarket space. AMZN also enjoys a dominant position in the cloud-computing market, particularly in the Infrastructure as a Service space, thanks to Amazon Web Services.
Amazon.com has an expected earnings growth rate of 23.6% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. AMZN presently has a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Five Below, IncFive Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 35.1%. The Zacks Consensus Estimate for current-year earnings has improved 10.7% over the past 60 days. FIVE presently carries a Zacks Rank #1.
Dollar TreeDollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR’s stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree’s expected earnings growth rate for the current year is 21.7%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 3.7% over the past 60 days. DLTR has a Zacks Rank #2.
Target CorporationTarget Corporation has evolved from being a pure brick & mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
Target Corporation’s expected earnings growth rate for the current year is 10.3%. The Zacks Consensus Estimate for current-year earnings has improved 3.7% over the past 60 days. Target currently carries a Zacks Rank #2.
The TJX CompaniesThe TJX Companies, Inc.i s a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies’ expected earnings growth rate for the current year is 9.3%. The Zacks Consensus Estimate for current-year earnings has improved 2.2% over the past 60 days. TJX presently has a Zacks Rank #2.
TJX (TJX - Free Report) closed at $154.79 in the latest trading session, marking a +2.53% move from the prior day. The stock outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Shares of the parent of T.J. Maxx, Marshalls and other stores witnessed a loss of 8.02% over the previous month, trailing the performance of the Retail-Wholesale sector with its gain of 0.51%, and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of TJX in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.17, signifying a 6.36% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $15.12 billion, indicating a 5.02% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.17 per share and a revenue of $63.9 billion, signifying shifts of +9.3% and +5.85%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, TJX boasts a Zacks Rank of #2 (Buy).
From a valuation perspective, TJX is currently exchanging hands at a Forward P/E ratio of 29.21. This indicates a premium in contrast to its industry's Forward P/E of 29.19.
Also, we should mention that TJX has a PEG ratio of 3.27. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.54 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 16, positioning it in the top 7% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Investors interested in stocks from the Retail - Discount Stores sector have probably already heard of Target (TGT - Free Report) and TJX (TJX - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Right now, Target is sporting a Zacks Rank of #1 (Strong Buy), while TJX has a Zacks Rank of #2 (Buy). This means that TGT's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
TGT currently has a forward P/E ratio of 16.13, while TJX has a forward P/E of 29.13. We also note that TGT has a PEG ratio of 2.63. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TJX currently has a PEG ratio of 3.26.
Another notable valuation metric for TGT is its P/B ratio of 3.73. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TJX has a P/B of 15.98.
These are just a few of the metrics contributing to TGT's Value grade of B and TJX's Value grade of D.
TGT sticks out from TJX in both our Zacks Rank and Style Scores models, so value investors will likely feel that TGT is the better option right now.
TJX (TJX - Free Report) ended the recent trading session at $150.90, demonstrating a -1.24% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily gain of 0.81%. At the same time, the Dow added 0.27%, and the tech-heavy Nasdaq gained 1.3%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 8.87% lagged the Retail-Wholesale sector's gain of 0.24% and the S&P 500's gain of 1.13%.
Investors will be eagerly watching for the performance of TJX in its upcoming earnings disclosure. In that report, analysts expect TJX to post earnings of $1.17 per share. This would mark year-over-year growth of 6.36%. Our most recent consensus estimate is calling for quarterly revenue of $15.12 billion, up 5.02% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.17 per share and a revenue of $63.9 billion, indicating changes of +9.3% and +5.85%, respectively, from the former year.
Any recent changes to analyst estimates for TJX should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. TJX presently features a Zacks Rank of #2 (Buy).
In terms of valuation, TJX is currently trading at a Forward P/E ratio of 29.56. Its industry sports an average Forward P/E of 27.09, so one might conclude that TJX is trading at a premium comparatively.
Investors should also note that TJX has a PEG ratio of 3.31 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.45.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
TJX (TJX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this parent of T.J. Maxx, Marshalls and other stores have returned -6.5%, compared to the Zacks S&P 500 composite's +1.6% change. During this period, the Zacks Retail - Discount Stores industry, which TJX falls in, has lost 1.9%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
TJX is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $5.17 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +9.7% from what TJX is expected to report a year ago. Over the past month, the estimate has remained unchanged.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of TJX, the consensus sales estimate of $15.12 billion for the current quarter points to a year-over-year change of +5%. The $63.9 billion and $67.42 billion estimates for the current and next fiscal years indicate changes of +5.9% and +5.5%, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Key Takeaways TJX, COST and WMT stand out as long-term investments amid volatility, favoring quality retailers.TJX benefits from off-price strength, global expansion, store refreshes and demographic reach.WMT and COST are growing through omnichannel scale, digital tools, memberships and efficiency. With the U.S. stock market navigating turbulent tides, investors are increasingly prioritizing quality over speculation. Concerns about tariffs, Middle East tensions, interest-rate expectations, consumer spending trends and stretched valuations in some pockets of the market have kept volatility alive, prompting many investors to seek companies with durable business models, omnichannel scale, strong balance sheets and consistent earnings power.
While high-growth stocks can deliver outsized returns, they also tend to be more sensitive to changing economic conditions and shifts in investor sentiment. In the current environment, building a resilient portfolio means balancing growth opportunities with established businesses that have demonstrated an ability to perform across economic cycles.
Blue-chip retailers fit that profile well. Companies with strong brands, pricing power, disciplined capital allocation and healthy cash generation are often better positioned to navigate inflationary pressures, supply-chain disruptions and evolving consumer preferences while continuing to invest for long-term growth.
Against this backdrop, industry leaders such as The TJX Companies, Inc. (TJX - Free Report) , Costco Wholesale Corporation (COST - Free Report) and Walmart Inc. (WMT - Free Report) stand out as compelling long-term investments. Their scale, operational efficiency and proven track records of delivering value to customers and shareholders make them well equipped to withstand market volatility while benefiting from long-term trends in U.S. retail spending.
Past-Year Price Performance of TJX, WMT & COST
Image Source: Zacks Investment Research
3 Blue-Chip Retail Stocks to WatchTJX: Off-Price Leadership Fuels Durable GrowthThe TJX Companies continues to strengthen its leadership in the global off-price retail market through its differentiated treasure-hunt shopping experience, deep vendor relationships and compelling value proposition. The company is capitalizing on the abundance of branded merchandise, expanding its customer base across demographics, and attracting younger shoppers through targeted marketing and digital engagement. Strategic investments in store refreshes, international expansion and merchandising capabilities, combined with disciplined capital allocation and a flexible operating model, reinforce its competitive position. With significant runway for market share gains, a growing global footprint and a resilient business model built to adapt across economic cycles, TJX appears well-positioned to deliver sustained long-term growth and shareholder value.
As of yesterday’s session, TJX’s market capitalization stood at $170.2 billion. The company pays out a quarterly dividend of 48 cents ($1.92 annualized) per share. TJX’s payout ratio is 34, with a five-year dividend growth rate of 12.5%. (Check TJX’s dividend history here)
The Zacks Consensus Estimate for TJX Companies’ current financial-year sales and EPS implies growth of 5.9% and 9.3%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 5.5% rise in sales and 9.7% growth in earnings. This Zacks Rank #2 (Buy) company has a trailing four-quarter earnings surprise of 8.8%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Costco: Membership Model and Innovation Drive GrowthCostco continues to reinforce its competitive advantage through its highly loyal membership model, differentiated value proposition and disciplined merchandising strategy. The company is expanding its digital capabilities, enhancing the member experience with AI-powered initiatives, personalization and convenience-focused services, while continuing to strengthen its Kirkland Signature portfolio and global warehouse footprint. Strategic investments in technology, real estate and operational efficiency position Costco to deepen customer engagement and capture additional market share across existing and new markets. With its membership flywheel, value-driven merchandising and expanding digital reach, Costco has a solid foundation to keep compounding growth over the long run.
Costco has a market capitalization of $420.2 billion. The company pays out a quarterly dividend of $1.47 per share ($5.88 annualized). COST’s payout ratio is 30, with a five-year dividend growth rate of 13.4%.
The Zacks Consensus Estimate for Costco’s current financial-year sales and earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively. For the next fiscal year, the consensus estimate indicates a 7.9% rise in sales and 10.2% growth in earnings. This Zacks Rank #3 (Hold) company has a trailing four-quarter earnings surprise of 1%, on average.
Image Source: Zacks Investment Research
Walmart: Omnichannel Acceleration Boosts Market ShareWalmart continues to strengthen its competitive position through its integrated omnichannel model, combining broad merchandise selection, faster delivery capabilities and growing digital engagement to capture market share across income groups. The company is also expanding higher-margin businesses, including advertising, marketplace and membership, while leveraging AI, automation and supply-chain investments to improve productivity and customer experience. These strategic initiatives, supported by disciplined execution and a resilient business model, reinforce Walmart's ability to generate durable growth while adapting to evolving consumer preferences. With its expanding ecosystem and ongoing innovation, Walmart appears well-positioned to sustain long-term growth.
Walmart has a market capitalization of $887.6 billion. The company pays out a quarterly dividend of about 24.75 cents per share (99 cents annualized). WMT’s payout ratio is 37, with a five-year dividend growth rate of 6.7%.
The Zacks Consensus Estimate for Walmart’s current financial-year sales and earnings per share implies year-over-year growth of 5.2% and 9.5%, respectively. For the next fiscal year, the consensus estimate indicates a 4.5% rise in sales and 13.3% growth in earnings. This Zacks Rank #3 company has delivered positive earnings surprises in each of the last three quarters.
It's risky to confidently predict a stock price because no one knows the future. However, despite the challenges, investors should give it a try by making reasonable assumptions, based on what they currently know, and updating them periodically as new information comes in.
Turning to an individual company, retailer TJX Companies (TJX +1.83%) has done well for shareholders. Where can investors expect the stock to land in a year?
To make that determination, it's time to look closer at TJX's results and expectations for the future.
Image source: Getty Images.
Strong results expected to continue TJX operates the TJ Maxx, Marshalls, and HomeGoods chains. They offer select merchandise, including apparel, beauty, and home fashion, at discounts of 20% to 60%. It can do this by selecting goods that manufacturers need to unload for various reasons.
People always clamor for discounts, but it's able to get more goods and better prices during challenging economic times. With consumers reeling from high prices and an uncertain job market, TJX has been able to draw customers across all of its retail brands.
Today's Change
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You can see this in the sales results. Fiscal first-quarter same-store sales (comps) increased 6%, and diluted earnings per share (EPS) grew 29% year over year to $1.19. The period ended on May 2. They exceeded management's expectations, and it now expects 3% to 4% comps growth for the year, and EPS to come in at $5.08 to $5.15. That translates into an EPS gain of 19% to 21% compared to last year's $4.26.
Making calculations Management's guidance has proven conservative, which is better than investors getting blindsided by TJX's failure to meet overly rosy expectations. That also means there's potential upside to the stock price if earnings continue to exceed expectations.
TJX's trailing-12-month EPS was $4.53. Assuming a 20% increase, the figure will grow to $5.44.
The shares currently trade at a price-to-earnings (P/E) ratio of 29. Applying that multiple to the projected EPS yields a share price of about $158.With TJX's current share price of $151.50 as of June 30, that implies about 4% upside.
That doesn't sound very exciting. But if management can sustain earnings growth at 25% for the next year, EPS will increase to $5.66. If the earnings multiple expands slightly to 30, the stock price would be about $170. That's a more solid 12% gain in the share price. With TJX beating its own expectations, even that 12% could prove conservative if earnings grow even faster.
It's important to focus on the long term, but investors should also monitor results and expectations to measure a company's progress.
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
This totals more than 800 top-rated stocks, and it can be overwhelming to try and pick the best stocks for you and your portfolio.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TJX has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.3% for the current fiscal year.
Seven analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.11 to $5.17 per share. TJX also boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TJX should be on investors' short list.
Key Takeaways HomeGoods delivered 9% comparable sales growth in fiscal Q1, outpacing TJX's larger banners.Net sales in the HomeGoods U.S. division rose 11% to $2.51B as demand broadened across regions.Segment margin expanded 270 basis points to 12.9%, signaling rising efficiency and scale. The TJX Companies, Inc.’s (TJX - Free Report) HomeGoods banner is increasingly looking like more than just a complementary business within the retailer's portfolio. The chain is emerging as a meaningful earnings contributor as its scale, sales momentum and profitability continue to improve.
The latest quarter highlighted that shift. HomeGoods posted a 9% comparable sales increase in the first quarter of fiscal 2027, outpacing the company's larger banners and demonstrating broad-based demand across regions and customer income groups. Net sales in the HomeGoods (United States) division rose 11% year over year to $2,506 million. More importantly, profitability improved at an even faster pace, with segment margin expanding 270 basis points to 12.9%.
The performance also reinforces the strength of HomeGoods' merchandising proposition. The banner continues to attract shoppers with an eclectic assortment of home fashions and furnishings sourced from around the world and offered at compelling values through its off-price model. The broad-based growth across regions and income demographics suggests that its appeal extends well beyond a specific customer segment.
Just as importantly, strong sales momentum is translating into higher profitability. The expansion in segment margin indicates that HomeGoods is not only growing faster but also becoming a more efficient business as it gains scale. The latest results suggest the banner is strengthening the contribution to TJX's earnings mix and establishing itself as an increasingly important profit engine within the portfolio.
TJX and Peers See Similar DynamicsRoss Stores (ROST - Free Report) achieved strong growth through disciplined execution of its off-price model. Driven by robust customer traffic, Ross Stores delivered a stellar 17% comparable store sales increase in the first quarter of fiscal 2026. The broad-based gains across income levels, age groups and ethnicities underscore the banner's wide consumer appeal. Importantly, Ross Stores translated this sales momentum into stronger profitability, with operating margin expanding 120 basis points to 13.4%.
Burlington Stores, Inc. (BURL - Free Report) has been benefiting from the disciplined execution of its off-price model. In the first quarter of fiscal 2026, Burlington Stores reported 6% comparable store sales growth and a 14% increase in total sales. Disciplined inventory management, faster inventory turns and an ability to chase trends enabled Burlington Stores to convert sales growth into margin expansion and consistent earnings growth.
TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 1.8% in the past month compared with the industry’s growth of 2%.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.93X, down from the industry’s average of 30.91X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for The TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 2 cents and 1 cent to $5.17 and $5.67, respectively, in the past 30 days.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about TJX (TJX - Free Report) .
TJX currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 87% and 4.4% of all recommendations.
Brokerage Recommendation Trends for TJX
Check price target & stock forecast for TJX here>>>
While the ABR calls for buying TJX, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TJX Worth Investing In?In terms of earnings estimate revisions for TJX, the Zacks Consensus Estimate for the current year has increased 0.3% over the past month to $5.17.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for TJX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for TJX may serve as a useful guide for investors.
TJX (TJX - Free Report) closed the most recent trading day at $155.19, moving -6.04% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.01% for the day. Meanwhile, the Dow gained 0.14%, and the Nasdaq, a tech-heavy index, lost 0.46%.
Shares of the parent of T.J. Maxx, Marshalls and other stores witnessed a gain of 5.2% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 5.64%, and the S&P 500's loss of 1.4%.
The investment community will be closely monitoring the performance of TJX in its forthcoming earnings report. The company is forecasted to report an EPS of $1.17, showcasing a 6.36% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $15.12 billion, indicating a 5.02% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.17 per share and revenue of $63.9 billion, which would represent changes of +9.3% and +5.85%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TJX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been a 0.28% rise in the Zacks Consensus EPS estimate. TJX presently features a Zacks Rank of #2 (Buy).
Looking at its valuation, TJX is holding a Forward P/E ratio of 31.96. This signifies a premium in comparison to the average Forward P/E of 28.85 for its industry.
Meanwhile, TJX's PEG ratio is currently 3.58. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TJX's industry had an average PEG ratio of 2.57 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
TJX (TJX - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this parent of T.J. Maxx, Marshalls and other stores have returned +3.4%, compared to the Zacks S&P 500 composite's -1.3% change. During this period, the Zacks Retail - Discount Stores industry, which TJX falls in, has lost 1.9%. The key question now is: What could be the stock's future direction?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, TJX is expected to post earnings of $1.17 per share, indicating a change of +6.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $5.17 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has changed +0.3% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +9.7% from what TJX is expected to report a year ago. Over the past month, the estimate has changed +0.5%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of TJX, the consensus sales estimate of $15.12 billion for the current quarter points to a year-over-year change of +5%. The $63.9 billion and $67.42 billion estimates for the current and next fiscal years indicate changes of +5.9% and +5.5%, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
While the Federal Reserve works out how to stop rampant inflation, consumers need to figure out how to make their dollars work harder for them at the store. In general, inflation works against retailers as shoppers pull back on spending, but some retailers actually benefit from it; off-price or discount retailers often report their best performance when everyone is looking for a deal.
That's why TJX Companies (TJX +0.47%) and Costco Wholesale (COST +0.90%) are some of the best stocks to own when times are tough. Here's why they can keep winning in the second half of the year.
Image source: Getty Images.
1. TJX Companies TJX is the umbrella company for TJ Maxx, Marshalls, HomeGoods, and Sierra, as well as many international off-price retail chains. It buys overstock and post-season merchandise, and shoppers love its great prices year-round, as well as the treasure-hunt feel of the stores, which keep them coming back as new merchandise arrives. The company owns more than 5,000 stores in 10 countries and has six e-commerce sites, providing a diversified backdrop to drive sales.
High-inflation periods bring in extra business as shoppers have less to spend and want the most bang for their buck. While many retailers are feeling the pinch and reporting pressured sales, TJX has demonstrated healthy growth.
Sales were up 9% year over year in the 2027 fiscal first quarter (ended May 2), with comparable sales (comps) up 6%. Earnings per share (EPS) increased 29% to $1.29. All divisions had increased comps and transactions, and management raised full-year guidance.
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CEO Ernie Herrman said, "Availability of quality, branded merchandise is outstanding." He expects the model to continue working for the foreseeable future and the company to capture market share long-term.
In previous challenging economies, TJX also outperformed, creating a hedge against the market, and TJX stock has outperformed the market over time. It also pays a growing dividend that yields 1% at the current price, providing another benefit for shareholders.
2. Costco Costco is the ultimate inflation stock. Its rock-bottom prices attract high volume, driving increased sales, higher profits, strong renewal rates, and new members.
CEO Ron Vachris said, "Our goal is to be the first to lower prices and last to raise them." Costco is taking a preemptive approach, lowering prices on some staples, like eggs, to provide greater value for its members and anticipate lower prices.
Costco has been reporting its highest growth in years as customers flock to its warehouses. Sales increased 11.6% year over year in the 2026 fiscal third quarter (ended May 10), and comps were up 9.8%. E-commerce remains a standout growth driver, and digitally enabled sales rose 21.5% in the quarter. Despite higher costs, profitability remained strong, and EPS increased from $4.28 last year to $4.93 this year.
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While higher oil prices have been negatively affecting many companies, Costco's lower gas prices are turning lemons into lemonade and bringing in new business. Since customers who fill up at its gas stations tend to spend more overall, this is another growth driver.
The best part is that Costco still has a long growth runway. It owns only 639 stores in the U.S. and isn't even in every state, and internationally, it's just getting started. Its long-term goal is to open 30 stores annually, and each of Costco's massive stores converts at high rates, providing a healthy path for long-term growth.
Costco stock also pays a growing dividend that yields 0.6% at the current price, and it's a forever stock that should keep winning this year and for the long term.
It has been about a month since the last earnings report for TJX (TJX - Free Report) . Shares have added about 4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is TJX due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
TJX Q1 Earnings and Sales Beat Estimates, Fiscal 2027 Guidance RaisedThe TJX Companies posted first-quarter fiscal 2027 results, wherein the top and bottom lines beat the Zacks Consensus Estimate. Both metrics also increased from the year-ago quarter. The company raised its fiscal 2027 guidance.
The TJX Companies’ fiscal first-quarter earnings per share (EPS) were $1.19, up 29% from the year-ago quarter. The metric also beat the Zacks Consensus Estimate of $1.01 per share.
Net sales came in at $14,323 million, registering an increase of 9% year over year and surpassing the Zacks Consensus Estimate of $13,998 million.
In the Marmaxx (the United States) division, the company’s net sales were $8,650 million, up 7% year over year. Net sales amounted to $2,506 million, up 11% year over year, in the HomeGoods (the United States) division. TJX Canada’s net sales were $1,285 million, up 12% from the figure reported in the year-ago period. TJX International’s (Europe & Australia) net sales were $1,882 million, up 13% year over year.
The company witnessed a 6% jump in consolidated comparable store sales, supported by strong performance in every division. Comparable store sales rose 6% at Marmaxx (the United States), 9% at HomeGoods (the United States), 7% at TJX Canada and 4% at TJX International (Europe & Australia).
The TJX Companies’ pretax profit margin was 12%, up 1.7 percentage points from the year-ago quarter’s level. The increase is driven by expense leverage from stronger-than-planned sales, favorable fuel hedges and better-than-anticipated merchandise margins.
The gross profit margin was 31.3%, up 1.8 percentage points year over year, mainly driven by higher merchandise margins, favorable inventory and fuel hedge impacts, and expense leverage from stronger sales performance.
The company’s selling, general and administrative costs, as a percent of sales, were 19.5%, a 0.1 percentage point increase.
TJX’s Financial Health SnapshotDuring the first-quarter fiscal 2027, the company increased its total store count by 48, reaching 5,262.
The TJX Companies ended the quarter with cash and cash equivalents of $5,580 million, long-term debt of $1,871 million and shareholders’ equity of $10,403 million. It generated an operating cash flow of $1,119 million in the first quarter of fiscal 2027.
In the fiscal first quarter, the company returned $1.1 billion to shareholders, including $604 million used to repurchase 3.8 million shares and $471 million paid in shareholder dividends. The company also increased its fiscal 2027 share repurchase plan to be between $2.75 billion and $3 billion.
What to Expect From TJX Moving Forward?For fiscal 2027, The TJX Companies now expects consolidated comparable store sales growth of 3% to 4%, up from the previously estimated 2% to 3% rise. The company also raised its pretax profit margin outlook to 11.9% to 12% compared with the prior range of 11.7% to 11.8%, and now anticipates earnings per share of $5.08 to $5.15, above the earlier forecast of $4.93 to $5.02.
For the second quarter of fiscal 2027, management expects consolidated comparable store sales to grow 2% to 3%. The company projects a pretax profit margin between 11.4% and 11.5%. The quarterly EPS is expected in the range of $1.15 to $1.17.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.
VGM ScoresAt this time, TJX has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, TJX has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
The TJX Companies (TJX +0.47%) has earned its reputation for providing value to both its customers and its long-term shareholders. Yet with shares up 34% over the past year and the stock now trading at roughly 32 times this year's earnings estimates, the value proposition for investors may be fading.
Operationally, the business remains strong. In the first quarter, same-store (comp) sales rose 6%, driven by higher customer traffic and spending per visit. The balanced growth across TJ Maxx, Marshalls, and HomeGoods, which posted an impressive 9% comp, shows the company continues to attract a broad range of customers.
The company's "treasure hunt" shopping experience has proven a durable advantage that resonates with younger shoppers. These Gen Z and millennial shoppers now account for a disproportionate number of its new customers, according to management.
TJX's margins are also expanding at a time when many retailers are facing pressure, with gross margin expanding by nearly 2 percentage points, reaching 31.3% in the quarter.
Image source: Getty Images
An opportunistic buying model The retailer's track record stems from its ability to capitalize on shifting fashion trends. While most companies struggle with excess inventory, the off-price retailer takes advantage, acquiring merchandise at deep discounts during times of distress.
The company leverages its relationships with over 21,000 vendors, giving it unmatched access to deals on brand-name goods. This allows TJX to sell brand-name and designer merchandise at prices typically 20% to 60% below those of traditional retailers. This value proposition continues to drive consistent traffic to its stores.
With over 5,200 stores globally, extending the growth story requires creativity. Management has outlined a pathway to an additional 1,800 stores within its current markets.
A significant portion of this growth is focused on the U.S. home furnishings market, which management estimates is worth over $30 billion. The company recently raised its long-term store target for HomeGoods in the U.S. from 1,000 to 1,800 locations.
This banner, along with its growing Homesense format, offers a source of profitable growth to complement its maturing apparel business while facing limited off-price competition.
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A high price for quality While the domestic growth story is compelling, international stores continue to report below-average profitability. TJX International's segment profit margin was just 4.6% in the first quarter, compared with the low-to-mid-teens for the rest of the business.
The company generated nearly $5 billion in free cash flow last year and maintains a strong balance sheet with $2.7 billion in net cash. This financial flexibility allows management to be patient, enabling it to invest in its next leg of growth, which could include entering a new category to expand its total addressable market.
After its strong run, the company needs to deliver on continued growth and margin expansion to drive returns from here. TJX remains one of the best-run companies in retail, and the off-price category remains a compelling space to invest, but at over 30 times earnings, patience may be the best approach.
Inflation is here and unlikely to leave soon, creating a need among investors. The need is for inflation-resistant stocks to offset broader market volatility.
Today’s inflation issues are underpinned by elevated oil prices. Although the Iran conflict appears to be winding down, the damage to global oil infrastructure will remain. Estimates vary but tend to agree: global energy capacity is down by the double digits, and it will be at least a year before it comes back online in most cases. In extreme cases, estimates run as high as 5 years.
Oil demand outpaces supply by nearly 1 million barrels per day. This leads to declining stockpiles and upward pressure on oil prices, which in turn fuels inflation. Inflation-resistant stocks are so because they cater to essentials and necessities, things that people and businesses need all the time, regardless of what they cost. This provides pricing power to those companies, supporting their margins and cash flow and enabling capital returns that boost investor returns over time.
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Ollie’s Bargain Outlets: A Cheap Play on Off-Price RetailIt’s easy to lump Ollie’s Bargain Outlet NASDAQ: OLLI in with the dollar store crowd, as it sells many of the same items. The difference is that Ollie’s is a bargain-basement, closeout model, whereas dollar stores are traditional retailers. Ollie’s is not tied to inventory or product lines, selling what it can find cheaply and providing value to its customers. It is more like a baby TJX Companies, nimble and flexible in the face of consumer headwinds, opportunistically taking advantage of deals as they arise.
Ollie's Bargain Outlet Today
OLLI
Ollie's Bargain Outlet
$73.05 -0.37 (-0.50%)
As of 02:34 PM Eastern
52-Week Range$72.50▼
$141.74P/E Ratio18.04
Price Target$125.13
Among Ollie’s attractions is its debt-free balance sheet and capacity to self-fund growth. Catalysts in 2026 include converting currently vacant Big Lots locations to the Ollie’s format and turning "dark-rent" expense into revenue-generating square footage, thereby widening margins. Cash flow is central to this investment thesis, as for all inflation-fighting stocks, as it enables value-building capital returns. Ollie’s does not yet pay dividends but may in the future; capital returns consist of share buybacks that reduced the count by more than 1% on a trailing 12-month basis as of the Q1 2026 earnings report.
The analysts' group created a headwind for Ollie’s stock by lowering price targets over the past year. However, the market overreacted, falling beneath the low end of the price target range, setting the stage for a rebound later this year.
A catalyst for a rebound could come in an upcoming earnings release if the company reports converted dark space or improved sales and margins. As it stands, the consensus calls for about 60% upside; institutions own nearly 100% of the shares and, on balance, are accumulating in 2026.
Casey’s General Stores: Generally a Buy, No Matter WhatCasey’s General Stores NASDAQ: CASY is among the highest-quality growth stories on the market today. It is expanding a network of convenience stores through organic growth and acquisitions, self-funding the strategy, and paying investors to own it.
Casey's General Stores Today
CASY
Casey's General Stores
$830.51 -1.16 (-0.14%)
As of 02:33 PM Eastern
52-Week Range$490.00▼
$927.85Dividend Yield0.27%
P/E Ratio43.35
Price Target$923.00
Its advantages include high-turnover items that enable rapid price responses, a rural moat, and high-margin prepared food items. It benefits from organic traffic and trade-down shopping and has an edge due to diminished competition stemming from its rural-oriented footprint.
Highlights in 2026 include the successful and rapid integration of its Fike’s acquisition and margin improvements in both inside and fuel sales.
Casey’s capital return includes dividends, distribution growth, and share buybacks. 2026 catalysts include the resumption of buybacks, which were paused in 2025 to conserve capital for acquisitions. The story as of mid-June is that the share count resumed decline on a quarterly and year-over-year basis and is expected to continue declining for the foreseeable future. The biggest risk is that the company will pause buybacks again, preserving capital for another value-building acquisition.
The TJX Companies: Top-Tier Inflation-Fighting StockTJX Companies Today
TJX
TJX Companies
$164.92 +0.75 (+0.46%)
As of 02:34 PM Eastern
52-Week Range$119.84▼
$170.00Dividend Yield1.16%
P/E Ratio32.02
Price Target$174.58
The TJX Companies NYSE: TJX is a top-tier inflation-fighting stock, and that is saying something because inflation-fighting stocks are inherently quality stocks. Its strength lies in its scale and reach, as it is the largest off-price retailer of fashion and home goods.
It's growing at an industry-leading pace, underpinned by robust deal volume and consumer traffic. Its highlights include ample availability of in-demand, branded merchandise and strong organic traffic. Fiscal Q2 systemwide comps increased by more than 6%, well above company forecasts, driving a healthy profit margin.
TJX’s catalysts are numerous, including an increase in its buyback authorization. The company upped its 2026 target by a quarter-billion dollars, targeting up to $3 billion in total purchases or about 1.6% of the mid-June market cap. TJX’s dividend is also attractive, yielding 1.2% at record-high share prices. The distribution is also expected to grow; the company maintains a double-digit compound annual growth rate and has the capacity to sustain it in the coming years.
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The Federal Reserve decided to hold short-term interest rates steady at its recent meeting. While noting solid economic activity, the central bank also mentioned uncertainty caused by the Iran war. Eight members expect to keep rates the same this year, but nine project higher federal funds rates.
Subsequently, the U.S. and Iran signed a memorandum of understanding, giving the countries two months to work out an agreement, and oil prices subsequently slid. However, the situation remains fluid.
Given this uncertainty. TJX Companies (TJX +0.47%), with strong business fundamentals and growing dividends, offers investors an appealing potential total return.
Image source: Getty Images.
Drawing customers TJX's retail brands actually attract more customers during times of economic stress. Its chains, which include TJ Maxx, Marshalls, and HomeGoods, are off-price retailers selling apparel and home fashions.
That means they opportunistically purchase merchandise. And TJX has more leverage and buying opportunities during challenging economic times.
The company does well during ordinary times, but its sales growth has accelerated recently. That's due to consumers struggling with higher prices and an uncertain job market.
TJX's fiscal first-quarter 2027 same-store sales (comps) jumped 6%, with increases across all of its divisions. This helped drive its diluted earnings per share 29% higher. The results were for the period that ended on May 2. Management expects a very healthy 3% to 4% comps gain for the year.
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The company's not a mature retailer, either. It continues to open new locations, adding 48 in the first quarter and ending the quarter with 5,262 stores.
Higher payments Shareholders will also appreciate the regularly increasing dividend payments. The board of directors raised June's quarterly dividend by nearly 13% to $0.48 per share.
TJX has increased dividends for 29 out of the last 30 years. The exception came during the early days of the COVID-19 pandemic in 2020, when the company took the understandable decision to suspend payouts.
Investors shouldn't worry about TJX's ability to afford the payments. The stock has a payout ratio, or dividends compared to earnings, of just 34%.
The shares have a 1.2% dividend yield, based on the new quarterly dividend rate. That might not sound exciting, but it's higher than the S&P 500 index's 1.1%. Besides, investors can count on receiving higher dividends down the road.
The dividend yield combined with TJX's capital appreciation potential makes the stock a compelling buying opportunity for investors with a long-term view.
Key Takeaways TJX International posted a 4% comp sales gain, led by strong trends in Europe and Australia.TJX opened its first store in Spain and plans more locations after encouraging initial customer response.TJX sees room for 1,700 more stores and is exploring joint ventures and strategic investments. The TJX Companies, Inc. (TJX - Free Report) appears to be strengthening its position to capture additional share in overseas markets, aided by steady momentum across Europe and Australia. In the first quarter of fiscal 2027, TJX International posted a 4% comparable sales increase, while management highlighted strong trends in Europe and particularly robust demand in Australia.
A notable development was the opening of the company’s first store in Spain. Management described the initial customer response as highly encouraging and indicated plans to add more locations in the country this year. The expansion suggests confidence that the off-price retail model can resonate with consumers beyond TJX’s existing markets.
The company also sees opportunities through partnerships. Its joint venture with Grupo Axo in Mexico is progressing well, combining TJX’s merchandising expertise with local operating capabilities. Though still in the early stages, management expressed optimism about the long-term potential of the Mexican market. Similarly, TJX remains constructive on its investment in Brands For Less in the Middle East despite geopolitical challenges.
Importantly, management emphasized that the company now operates in 10 countries and believes there is room for more than 1,700 additional stores within its existing markets. TJX is exploring adjacent countries and multiple expansion avenues, including joint ventures and strategic investments.
These initiatives suggest TJX is leveraging both organic expansion and partnerships to deepen its international footprint and pursue greater market share overseas.
TJX and Its Peers Seek Growth Through Store ExpansionRoss Stores (ROST - Free Report) remains focused on domestic expansion. With the Northeast emerging as a key growth area, Ross Stores continues to broaden its footprint across new and existing U.S. regions. Ross Stores plans to open about 110 new stores this year and sees opportunities to further penetrate underpenetrated markets, underscoring its emphasis on capturing additional market share within the United States.
Burlington Stores, Inc. (BURL - Free Report) remains focused on strengthening its domestic footprint. Supported by strong productivity initiatives, Burlington Stores continues to add new locations and expects 115 net new stores in 2026. Burlington Stores also sees a robust pipeline for 2027 and 2028, underscoring its emphasis on capturing additional market share across the United States.
TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 3.5% in the past month against the industry’s decline of 2.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 30.54X, down from the industry’s average of 31.26X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal-year earnings per share implies a year-over-year rise of 9.3% and 9.7%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The TJX Companies demonstrate robust sales and profit growth across segments as a result of the poor consumer sentiment in the United States. Strong cash flow generation underpins TJX's ability to sustain dividends and buyback shares, although I have to question whether buybacks are actually attractive at the current valuation. Valuation metrics indicate a significant premium compared to the consumer discretionary sector median, as well as to the firm's own 5Y historic metrics.
Key Takeaways TJX posted 6% comparable sales growth in Q1, fueled by higher transactions and larger basket sizes.Kohl's proprietary brands grew 6% in Q1, as it sharpened assortments and improved inventory availability.KSS faces margin headwinds from price-sensitive shoppers, digital penetration and transport costs. As consumer spending patterns continue to evolve and retailers compete to attract value-conscious shoppers, attention is turning to The TJX Companies, Inc. (TJX - Free Report) and Kohl’s Corporation (KSS - Free Report) , two prominent players in the Retail-Wholesale sector. Both companies serve a broad customer base with diverse merchandise offerings, but their distinct business models reflect different approaches to navigating the highly competitive retail landscape.
TJX operates an off-price retail network featuring apparel, home fashions and accessories through banners such as T.J. Maxx, Marshalls and HomeGoods. Meanwhile, Kohl’s focuses on department store retailing, offering clothing, footwear, beauty products, home goods and accessories through its nationwide store base and e-commerce platform. Comparing these two companies provides insight into how different retail strategies influence growth, profitability and competitive positioning within the consumer marketplace.
The Case for The TJX Companies StockTJX’s off-price retail model continues to be a key competitive advantage, enabling it to attract consumers across income groups through a combination of branded merchandise, attractive pricing and a treasure-hunt shopping experience. In the first quarter of fiscal 2027, comparable sales increased 6%, driven by both higher customer transactions and larger basket sizes. Management noted that all divisions delivered transaction growth, highlighting the broad appeal and resilience of the company’s value-focused business model.
The company is also benefiting from exceptional merchandise availability and its extensive global sourcing network. With more than 1,400 buyers and strong vendor relationships, TJX remains well-positioned to secure quality branded products at attractive prices. Management emphasized that merchandise availability remains outstanding, allowing the retailer to maintain fresh assortments, respond quickly to consumer trends and capitalize on buying opportunities that support both sales growth and margin expansion.
TJX’s growth strategy extends beyond merchandising strength, supported by continued store expansion and market-share gains. The company ended the fiscal first quarter with 5,262 stores worldwide after adding 48 net new locations. Management remains optimistic about expansion opportunities across Europe and Australia while pursuing growth initiatives in newer markets such as Spain and Mexico. The retailer believes it still has a substantial runway to increase its global footprint and deepen its presence across key markets.
TJX’s operational flexibility remains a major competitive advantage. Its fast-turning inventory model allows the company to quickly capitalize on emerging trends, adjust merchandise assortments and pursue high-demand categories. This agility supports strong customer traffic, healthy merchandise margins and continued market-share gains, while helping TJX maintain a fresh and compelling shopping experience that encourages repeat visits across its retail banners.
The Case for Kohl’s StockKohl’s continues to leverage its broad retail footprint and omnichannel capabilities to serve millions of families across the United States. With more than 1,100 stores nationwide and a diverse portfolio of national and proprietary brands, the company maintains a strong presence in the department store space. Its value-focused positioning and convenience-driven approach help attract middle and lower-income consumers seeking quality merchandise at affordable prices.
The company is strengthening its merchandise strategy through a balanced mix of national brands and private labels. Proprietary brands grew 6% in the first quarter of fiscal 2026, supported by renewed investments in opening price points and improved inventory availability. Kohl’s is also refining assortment by emphasizing key brand partners and reducing redundancies, enabling it to better align with customer preferences while reinforcing the value proposition.
The company’s growth strategy extends beyond merchandising improvements, supported by investments in digital capabilities, store enhancements and category expansion. The retailer continues to enhance customer engagement through Sephora shop-in-shops, impulse merchandising initiatives and targeted opportunities in footwear and apparel. Personalized promotions, real-time digital offers and the use of AI in customer servicing further support customer loyalty while improving operational efficiency and long-term growth.
However, Kohl’s faces challenges from a cautious consumer environment and ongoing pressure to balance profitability with value. The company’s core customer remains highly price sensitive, prompting continued investments in promotions and competitive pricing. In addition, higher digital penetration and transportation costs present margin headwinds, requiring disciplined inventory management and expense control to sustain performance in a dynamic retail landscape.
How Do the Estimates Compare for TJX & KSS?The Zacks Consensus Estimate for The TJX Companies’ fiscal 2027 and 2028 EPS has remained unchanged at $5.17 and $5.67, respectively, over the past seven days.
Image Source: Zacks Investment Research
The estimate for Kohl’s fiscal 2026 and 2027 EPS has moved up 4 cents to $1.32 and 1 cent to $1.40, respectively, over the past seven days.
Image Source: Zacks Investment Research
Valuation & Price Performance of TJX & KSSThe TJX Companies currently trades at a forward 12-month P/E ratio of 30.6x, slightly below the industry average of 31.25x. In comparison, Kohl’s trades at a lower multiple of 13x.
P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
Over the past six months, stock performance has favored TJX, which delivered a 5.3% gain. KSS, in contrast, declined 17.8%, while the sector slipped 0.4%.
Six Months Price Performance
Image Source: Zacks Investment Research
Bottom Line: TJX Appears Better Positioned for GrowthBoth TJX and Kohl’s are working to strengthen their positions in the retail landscape, but the former currently offers a clearer growth trajectory. Its resilient off-price model, extensive sourcing capabilities, strong comparable sales trends and ongoing store expansion provide solid momentum. While Kohl’s is making progress through merchandising and digital initiatives, ongoing consumer pressures and margin headwinds remain challenges. Supported by stronger stock performance, robust execution and continued expansion opportunities, TJX appears better positioned for sustained growth at this stage.
TJX currently has a Zacks Rank #2 (Buy), while KSS carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways TJX's Marmaxx unit delivered 6% comparable sales growth and 7% higher net sales in fiscal Q1 2027.TJX benefits from flexible merchandising and fast inventory turns to keep assortments fresh.TJX saw healthy apparel and home demand, with higher transactions and basket size. The TJX Companies, Inc. (TJX - Free Report) continues to benefit from the strength of its Marmaxx division, thanks to the segment’s value-focused merchandising model and the ability to quickly adapt to changing consumer preferences. In the first quarter of fiscal 2027, the Marmaxx business — which includes T.J. Maxx, Marshalls and Sierra — delivered 6% comparable sales growth, while net sales increased 7% to $8.65 billion. Segment profit rose to $1.27 billion from $1.11 billion in the year-ago period.
Marmaxx’s momentum has been broad-based, with multiple merchandise categories contributing to the strong performance. Rather than depending on a few standout areas, TJX benefits from the flexibility of the off-price model, which allows it to devote more space and attention to stronger categories while pulling back on weaker ones. The company’s rapid inventory turns and close coordination among the buying, planning and allocation teams allow it to react quickly to changing trends and keep assortments fresh.
Another encouraging aspect has been the breadth of demand. Marmaxx delivered healthy growth across both apparel and home categories, with comparable sales strength evident across geographic regions and income demographics. Executives noted healthy transaction growth and a higher average basket size, indicating that shoppers continue to embrace the division’s combination of brands, fashion and value.
Consumers continue to respond to Marmaxx’s combination of recognizable brands, fashion and compelling value. Coupled with the division’s ability to quickly capitalize on emerging trends, these strengths have enabled Marmaxx to remain a major contributor to The TJX Companies’ consistent operating performance and sustained momentum.
TJX and Its Peers Continue to Benefit From Off-Price MomentumRoss Stores (ROST - Free Report) similarly achieved outstanding growth by successfully executing its off-price model. Driven by robust customer traffic, Ross Stores delivered a stellar 17% comparable store sales increase in the first quarter of fiscal 2026. This upward trajectory reflects widespread momentum across multiple demographic groups. By delivering compelling product value and an upgraded shopping experience, Ross Stores effectively expanded its customer base to ensure consistent top-line growth.
Burlington Stores, Inc. (BURL - Free Report) has also been benefiting from the strength of the off-price model. In the first quarter of fiscal 2026, Burlington Stores reported 6% comparable store sales growth and a 14% increase in sales, supported by consumers' continued focus on value. Disciplined inventory management, faster inventory turns and an ability to chase trends have enabled Burlington Stores to maintain strong momentum and deliver consistent growth.
TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 12.1% in the past month compared with the industry’s growth of 0.4%.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 31.45X, down from the industry’s average of 32.24X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal-year earnings per share implies a year-over-year rise of 9.3% and 9.7%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you are an investor who is looking for a portfolio defense play that does not sacrifice aggressive capital appreciation, the current retail landscape feels like a minefield. Traditional mall brands are battling severe inventory gluts, and middle-class consumers are still dealing with prolonged inflationary pressure. Discretionary income is shrinking, leaving fewer dollars for full-priced apparel and home goods.
For most retailers, this environment signals margin compression and declining foot traffic. Yet, within this distress lies a structural advantage for a select few.
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TJX Companies NYSE: TJX is actively weaponizing these macroeconomic headwinds, converting traditional retail distress into record-breaking margin expansion. By continuously capturing market share from full-price department stores, the king of off-price retail offers a defensive growth profile for investors.
TJX Companies recently traded near the $170 level, just below its 52-week high—price action validates its status as the apex predator of the consumer discretionary sector.
Feasting on Scraps: How Distress Fuels the TJX FlywheelTJX Companies Today
TJX
TJX Companies
$168.42 +0.08 (+0.04%)
As of 06/12/2026 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$119.84▼
$170.00Dividend Yield1.14%
P/E Ratio32.70
Price Target$174.58
Understanding the structural advantage requires looking at the global supply chain ecosystem.
When traditional department stores misjudge consumer demand, face sudden order cancellations, or deal with seasonal overstock, off-price retailers step in to clear out that excess high-quality inventory for pennies on the dollar.
The worse the macroeconomic environment gets for traditional apparel, the better the inventory quality and pricing power can become for opportunistic buyers like TJX Companies.
This dynamic creates a localized treasure-hunt shopping experience, a powerful driver of physical foot traffic that remains highly resilient against pure-play e-commerce competitors. An algorithm cannot replicate the thrill of discovering a designer handbag at a 70% discount.
TJX Companies' fiscal first-quarter 2027 earnings data proves the thesis. It's $1.19 in earnings per share (EPS) cleared analyst consensus estimates by a wide margin of 17 cents. Revenue expanded 9.2% year-over-year (YOY) to $14.32 billion. Marmaxx comparable store sales, the core of the business, rose a healthy 6% while generating a 90-basis-point expansion in profit margins. HomeGoods delivered even more aggressive growth, with comparable sales jumped 9%, pushing segment margins up an impressive 270 basis points.
Based on this strength, management raised its full-year fiscal 2027 outlook. Its revised gross margin targets upward to a range of 31.2% to 31.3% for the fiscal year, with pretax profit margins expected to land between 11.9% and 12.0%. This operating leverage is the engine behind a solid 57.9% return on equity.
The Shareholder Spoils: Dividends and BuybacksA business generating $6.13 per share in operating cash flow has the luxury of returning significant amounts of capital to shareholders while simultaneously funding domestic and international store expansion.
Management authorized an aggressive increase in full-year share buybacks, projecting repurchases between $2.75 billion and $3.0 billion. A corporate buyback program of this magnitude can not only reduce the share count and boost EPS, but also signal immense internal conviction in the trajectory of the balance sheet and future cash flows.
Income-focused investors also benefit from a legendary payout history. On June 9, 2026, the board declared a 48-cent-per-share quarterly dividend. This preserves a five-year streak of consecutive dividend payments, following a 13% payout hike announced in March.
Current Price$168.42High Forecast$197.00Average Forecast$174.58Low Forecast$133.00TJX Companies Stock Forecast Details
Navigating four decades of economic cycles, recessions, and global supply chain disruptions while consistently raising payouts is the hallmark of a bulletproof business model and disciplined capital management.
Wall Street institutions are rapidly repricing the upside potential to account for this dual-engine capital return strategy.
Analysts at Truist Securities recently raised their price target to $190, while UBS reiterated a Buy rating.
Compared to peers like Ross Stores NASDAQ: ROST and Burlington Stores NYSE: BURL, the sheer scale of its roughly $186 billion market capitalization gives TJX Companies unmatched leverage over global manufacturing hubs.
The Smart Money Bets on TJX's DefenseMarket sentiment remains broadly bullish, reflected directly in the options chain and short interest data.
Short interest is at about 1.59% of the float. With just over 14 million shares sold short and a days-to-cover ratio of 2.4, institutional investors are showing little appetite for betting against the current valuation.
Heavyweights like Bank of America Corp. and Bank of New York Mellon maintain large anchor positions, underscoring the TJX's defensive nature.
Recent headlines highlighting executive selling require context. TJX Executive Chair Carol Meyrowitz divested 55,624 shares on June 11, 2026, and CFO John Klinger sold 6,235 shares earlier in the month for roughly $1 million. These sales followed recent Form 144 filings and appear tied to previously awarded equity compensation, making them less alarming than open-market selling based on a changed view of the business.
Is TJX's Premium Price Tag Worth Paying For?The fundamental data validates the off-price dominance thesis. Strained discretionary income will continue to force middle-class shoppers to abandon full-price retail in favor of discount channels. The resulting margin expansion appears structurally permanent as long as macroeconomic pressure persists. TJX Companies operates as the ultimate vacuum for retail distress, turning competitors' overstock problems into record-breaking cash flow.
Investors must weigh the current valuation multiple before deploying capital.
TJX Companies trades at a trailing price-to-earnings (P/E) ratio of 32.6 and a forward P/E ratio of 32.5. A premium multiple demands flawless execution. Any sudden deceleration in comparable store sales or unforeseen logistics bottlenecks could trigger a near-term pricing correction. This elevated multiple represents the fundamental cost of admission for holding the highest-quality asset in the discount apparel sector.
The primary risk is a rapid economic recovery that reinvigorates full-price retailers, potentially tightening the supply of deeply discounted, high-quality inventory for TJX Companies.
Cautious investors might consider adding TJX Companies to their watchlist and utilizing potential broader market pullbacks to initiate a position. Establishing exposure during periods of temporary market weakness could allow investors to capture the long-term structural tailwinds of the off-price retail ecosystem without overpaying at peak valuation levels.
Should You Invest $1,000 in TJX Companies Right Now?Before you consider TJX Companies, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and TJX Companies wasn't on the list.
While TJX Companies currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Investors looking for signs of life in retail just got a loud one from TJX Companies (TJX +0.04%). The parent company of TJ Maxx, Marshalls, HomeGoods, and Sierra, delivered a solid first quarter for fiscal 2027, significantly beating analyst expectations.
The stock is looking stronger than it has in years. But after such a strong run, is TJX still a buy? The answer increasingly looks like yes -- though not without a few caveats.
A blowout quarter across the board Overall, the apparel and home fashions retailer had an extremely good quarter. Net sales increased 9 percent to $14.3 billion, and comparable sales rose 6 percent versus the year-ago quarter.
Adjusted EPS (earnings per share) increased 29 percent to $1.19. That was well above the analysts' estimate of $1.00.
What made the quarter even better was the breadth in growth. Comparable sales grew across all four main divisions, including HomeGoods (+9%), TJX Canada (+7%), Marmaxx (which houses TJ Maxx, Marshalls, and Sierra) (+6%), and TJX International (+4%).
This is impressive because retailers sometimes have a strong quarter because of one hot category or temporary promotions. TJX's momentum looked much broader.
What's noteworthy is that management repeatedly pointed out during the earnings call that, across both the apparel and home categories, growth was driven by all income levels and regions, and by both higher customer traffic and larger basket sizes.
Plainly put, TJX isn't just winning over lower-income shoppers. Higher-income consumers are shopping there too.
Image source: Getty Images. TJX Companies' growth has been driven by a broad shopper profile.
The growth engine: exceptional merchandise availability TJX's business strategy has been different from that of most traditional retailers, and it may be one of the reasons why it has been successful.
Traditional retailers purchase their inventory months in advance, relying almost exclusively on pre-planned product assortment strategies. In contrast, TJX purchases products opportunistically throughout the year. Its 1,400-plus buyers scour the market all through the year to find the best discounts across all brands. The retailer adds thousands of new vendors each year and is often the first call for these vendors looking to offload excess inventory.
Management stated that merchandise availability right now is "off the charts," and used that phrase multiple times during the conference call.
Margins up, guidance raised again TJX's pre-tax margin widened to 12%, a 170 basis-point increase versus last year. Gross margin expanded 180 basis points to 31.3%. In the retail industry, those are substantial gains.
Analysts, obviously, probed whether those margin improvements were sustainable or simply boosted by temporary factors like fuel hedges and freight timing. While management acknowledged that favorable fuel hedges helped the quarter, it also stressed that merchandise margins were stronger than expected and that expense leverage from higher sales played a major role.
Importantly, TJX raised its full-year guidance. Comparable sales growth is now expected at 3% to 4%, while the outlook for earnings per share (EPS) is now between $5.08 and $5.15 for fiscal 2027.
However, management indicated it did not fully capitalize on the upside in the first quarter for its full-year guidance. Specifically, CFO John Klinger noted that the company assumed that elevated diesel prices would persist throughout fiscal 2027. Therefore, should diesel prices fall later in the year, margins potentially could expand beyond the current guidance.
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International expansion is also a key part of the story One underappreciated part of the TJX story may be international expansion. The company now operates in 10 countries and recently opened its first store in Spain, where management described customer response as "terrific."
Investors have long viewed TJX primarily as a mature U.S. retailer. This quarter suggests management sees far more runway ahead.
No retailer is immune to risks associated with the current economic climate. TJX still faces wage inflation, freight and fuel volatility, and the possibility that consumers eventually pull back on discretionary spending.
The stock isn't relatively cheap among apparel stocks, either. Nevertheless, yesterday's earnings announcement reinforced several key strengths, such as strong traffic trends, expanding margins, excellent inventory access, and possibly the most underrated factor -- continuing demand across all income levels.
TJX PE Ratio (Forward 1y) data by YCharts.
Furthermore, management stressed the importance of investing in long-term growth. The consistency and breadth of the latest quarterly results underscore that.
The market clearly liked what it saw. Shares of TJX rose roughly 5.7% in yesterday's trading session following the earnings release.
TJX Companies offers a compelling case for long-term investors seeking a retailer that's consistent in execution, has resilient consumer demand, generates significantly higher profitability, and presents multiple paths toward future growth.
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What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
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Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
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Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
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How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.7% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
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Stock to Watch: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TJX has a Growth Style Score of A, forecasting year-over-year earnings growth of 7.2% for the current fiscal year.
One analyst revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $5.07 per share. TJX also boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TJX should be on investors' short list.
The company reported first-quarter earnings of $1.19 per share, exceeding the analyst consensus estimate of $1.01. Revenue rose 9% year over year to $14.32 billion, above Wall Street expectations of $14.00 billion.
TJX raised its fiscal 2027 GAAP earnings guidance to a range of $5.08 to $5.15 per share, up from its prior forecast of $4.93 to $5.02 per share. Analysts were expecting $5.13 per share.
For the second quarter of fiscal 2027, the company expects GAAP earnings of $1.15 to $1.17 per share, compared with analyst estimates of $1.18 per share.
Ernie Herrman, Chief Executive Officer and President of The TJX Companies, Inc., stated, “I am extremely pleased with our first quarter performance. Sales, pretax profit margin, and earnings per share were all well above our plan. Throughout the quarter, our teams around the globe successfully executed on our off-price fundamentals to deliver on our value mission and offer an exciting treasure-hunt shopping experience to customers, every day.”
TJX shares fell 1.4% to trade at $157.06 on Thursday.
These analysts made changes to their price targets on TJX following earnings announcement.
BTIG analyst Robert Drbul maintained the stock with a Buy and raised the price target from $185 to $190. Baird analyst Mark Altschwager maintained TJX with an Outperform rating and raised the price target from $172 to $175. Considering buying TJX stock? Here’s what analysts think:
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American consumers are becoming increasingly cautious. The University of Michigan's Consumer Sentiment Index recently fell to 48.2, one of the lowest readings ever recorded. Survey respondents cited concerns about inflation, gasoline prices, tariffs, and overall purchasing power.
When consumers feel pressured, shopping habits tend to change.
Instead of buying premium or luxury brands, many households begin searching for discounts, lower-priced alternatives, and retailers that stretch their budgets further. Historically, that environment has often benefited value-oriented retail stocks.
Two companies that could potentially benefit from that trend are Dollar General (DG +0.40%) and TJX Companies (TJX +0.04%).
Dollar General Dollar General operates more than 20,000 stores across the United States, primarily serving rural and lower-income communities.
The company's customer base tends to be particularly sensitive to inflation and economic stress. While that creates challenges when consumers pull back spending, it can also drive traffic as shoppers increasingly seek lower-cost alternatives to traditional grocery stores, pharmacies, and big-box retailers.
Image source: Getty Images.
Put simply, the business continues generating growth despite economic headwinds.
Dollar General reported $42.7 billion in fiscal 2025 revenue, up 5.2% year over year, while same-store sales increased 3%. Management is currently projecting net sales growth of 3.7% to 4.2% in fiscal 2026, suggesting demand remains resilient despite weak consumer sentiment.
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The company has also focused on improving inventory management, expanding private-label offerings, and increasing operational efficiency after several difficult years marked by inflationary pressures and higher shrink rates.
If consumer sentiment remains weak throughout 2026, Dollar General could continue to benefit from shoppers looking to save money on everyday essentials.
TJX Companies TJX owns popular off-price retail chains, including T.J. Maxx, Marshalls, and HomeGoods.
Unlike many traditional retailers, TJX benefits from a business model built around discounted branded merchandise. The company purchases excess inventory from manufacturers and retailers and sells it at significant discounts.
That strategy has historically performed well during periods of economic uncertainty.
Consumers still want recognizable brands, but many become less willing to pay full price when budgets tighten. TJX gives shoppers access to discounted apparel, home goods, and accessories, often at prices 20% to 60% below traditional retailers.
The numbers remain strong.
TJX generated $60.4 billion in fiscal 2026 revenue, up 7% year over year, while comparable sales increased 5%. Net income reached approximately $5.5 billion. The company's fiscal year ended on Jan. 31, 2026.
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More recently, the company reported 6% comparable sales growth in its latest quarter.
TJX has consistently generated strong cash flow, producing $6.9 billion in operating cash flow in fiscal 2026 while expanding its store base and maintaining healthy profitability.
Built for tough economic environments I'm not saying you should root for weak consumer confidence. A strong economy generally benefits most businesses.
However, certain companies are built specifically for tougher economic environments. When consumers become more price-conscious, discount retailers and off-price chains often gain market share as shoppers prioritize value over convenience or brand loyalty.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about TJX (TJX - Free Report) .
TJX currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 87% and 4.4% of all recommendations.
Brokerage Recommendation Trends for TJX
Check price target & stock forecast for TJX here>>>
The ABR suggests buying TJX, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is TJX Worth Investing In?Looking at the earnings estimate revisions for TJX, the Zacks Consensus Estimate for the current year has increased 1.9% over the past month to $5.14.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for TJX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for TJX may serve as a useful guide for investors.
TJX (TJX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this parent of T.J. Maxx, Marshalls and other stores have returned +0.6% over the past month versus the Zacks S&P 500 composite's +5.1% change. The Zacks Retail - Discount Stores industry, to which TJX belongs, has gained 0.1% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
TJX is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +6.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.
The consensus earnings estimate of $5.15 for the current fiscal year indicates a year-over-year change of +8.9%. This estimate has changed +1.9% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.66 indicates a change of +9.8% from what TJX is expected to report a year ago. Over the past month, the estimate has changed +1.8%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #3 (Hold).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
For TJX, the consensus sales estimate for the current quarter of $15.14 billion indicates a year-over-year change of +5.2%. For the current and next fiscal years, $63.85 billion and $67.36 billion estimates indicate +5.8% and +5.5% changes, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Investors might want to bet on TJX (TJX - Free Report) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.
Therefore, the Zacks rating upgrade for TJX basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For TJX, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for TJXFor the fiscal year ending January 2027, this parent of T.J. Maxx, Marshalls and other stores is expected to earn $5.15 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for TJX. Over the past three months, the Zacks Consensus Estimate for the company has increased 2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of TJX to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways TJX raises fiscal 2027 sales and comparable sales growth guidance after strong results.The TJX Companies sees customer transaction growth across all retail divisions.TJX delivers 6% comparable sales growth and around 9% revenue growth in the first quarter of fiscal 2027. The TJX Companies, Inc. (TJX - Free Report) delivered strong results in the first quarter of fiscal 2027, with sales, profitability and earnings per share coming in above the company's plan. The company delivered net sales of $14.3 billion, up nearly 9% year over year, with overall comp sales increasing 6% during the period. TJX Companies attributed its strong first-quarter performance to disciplined execution across the organization and effective collaboration among its global teams.
The company noted that all divisions delivered increases in customer transactions, while management highlighted continued customer attraction across its retail banners. All company divisions contributed to this growth, demonstrating broad-based strength across the business. In addition to sales growth, each division generated increases in customer transactions, indicating healthy customer engagement and demand. The combination of positive comparable sales and higher transaction volumes reflects solid execution across the company's operating segments.
Marmaxx delivered a strong 6% comparable sales increase, while TJX Canada reported a 7% comp sales gain. HomeGoods outperformed with a 9% comparable sales increase during the quarter. Additionally, the continued availability of quality branded merchandise is also positioning the company to capitalize on attractive opportunities in the marketplace.
Looking ahead, the company raised its guidance for fiscal 2027 and expects overall comparable sales growth of 3% to 4% compared with the prior guided range of 2% to 3%. The company also raised guidance for consolidated sales growth to the range of 5%-6% from the previous guided range of 4% to 5%. Overall, broad-based sales growth, higher customer transactions and strong merchandise availability provide support for TJX Companies’ growth initiatives and expansion opportunities.
How Do Burlington Stores & Ross Stores Fare?Burlington Stores, Inc. (BURL - Free Report) reported a 14% year-over-year increase in first-quarter fiscal 2026 sales to $2,852 million, supported by a 6% increase in comparable store sales. Looking ahead, Burlington Stores expects fiscal 2026 total sales growth to be in the range of 9% to 11%, driven by anticipated comparable store sales growth of 2% to 4%.
Ross Stores, Inc. (ROST - Free Report) delivered total sales growth of 21% year over year to $6 billion in the first quarter of fiscal 2026, supported by a robust 17% year-over-year increase in comparable store sales compared with flat performance in the prior year. Reflecting the strong quarter, Ross Stores has raised its fiscal 2026 same-store sales growth outlook to the range of 6%-7% from the previous guided range of 3%-4%.
The Zacks Rundown for TJXThe company’s shares have gained 1.8% in the past six months compared with the industry’s 8.5% growth.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 28.7, lower than the industry’s average of 31.13.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Many retailers have had a tough time over the last couple of years. High prices are weighing on consumers, and tariffs and high gas prices have only made things more challenging.
But not all retailer stocks have done poorly. Costco Wholesale (COST +0.68%) and TJX Companies (TJX +0.04%) have posted impressive results and rewarded shareholders.
Nonetheless, there's plenty of upside for long-term investors who purchase their shares this year. Here's why these two companies remain top-of-the-class retailers.
Image source: Getty Images.
1. Costco When you ask people to pay a fee to shop at your warehouses, you need to make members happy. Costco has excelled at doing so for decades by offering a wide range of high-quality goods and services at attractive unit prices.
Management has even shown a willingness to forgo short-term profitability in an effort to service customers and engender their loyalty. For instance, it held off on raising its annual fee, increasing it effective Sept. 1, 2024, after a longer-than-usual seven years.
And it's done a fine job of retaining members over the years. Its global renewal rate typically hovers around 90%, including 89.7% in the fiscal third quarter, which ended on May 10.
Costco also consistently grows same-store sales (comps). That's particularly impressive during recent times when many retailers have struggled to increase comps in the face of broad-based inflationary pressures. In the most recent three-month period, comps increased 6.6%, after removing foreign-currency translations and the impact of gasoline price changes, driven by increased spending and traffic to its stores.
The company is not merely growing sales at the expense of profitability, either. Third-quarter operating income increased 11.3% year over year.
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Costco has a simple business plan that management executes very well. It continues to open new warehouses, and fortunately, it has room for more expansion. It started the year with 914 warehouses and opened 14 during the first nine months. Management anticipates adding another 12 this quarter. Most of the new warehouses are located in the U.S. and Canada, but it will also open a couple internationally.
Consistently strong results and expansion opportunities are a powerful combination.
2. TJX Companies TJX Companies attracts customers by offering apparel and home goods merchandise at a 20% to 60% discount. Its popular retail banners include TJ Maxx, Marshalls, and HomeGoods.
How can the company offer goods at such deep discounts? It buys excess inventory from manufacturers. Better still, the more challenging the economic times, the better the opportunity for TJX to buy goods at attractive prices.
It does well during normal times, but it has more high-quality, low-priced inventory amid challenging conditions. That's perfect, since that's when consumers, who always look for bargains, become particularly price-sensitive.
These may be stressful times for consumers, but they've clamored for TJX's merchandise across all of its retail chains. Its fiscal first-quarter comps increased 8% on a constant-currency basis. That's for the period that ended on May 2. Management expects a strong 3% to 4% comps growth for the year.
TJX has 6% more inventory than a year ago, but unlike some retailers, that's not a negative right now. It has found an abundance of attractive buying opportunities, allowing the company to provide more offerings to customers. After all, the retailer didn't have to discount goods to clear shelves, as seen by its 31.3% gross margin, a 1.8-percentage-point expansion from last year.
It's also highly profitable. TJX's first-quarter diluted earnings per share grew 29.3% year over year to $1.19.
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Management also sees a growth opportunity, adding 48 locations during the first quarter. It finished the period with 5,262 stores.
With its sales growth, there's clearly room for more locations.
Key Takeaways TJX posted a 6% comparable sales increase, driven by higher customer transactions across segments.The TJX Companies saw demand remain consistent across income groups, supporting broad growth.TJX reported healthy sales growth in the US, Canada, Europe and Australia, reflecting momentum. The TJX Companies, Inc.’s (TJX - Free Report) first-quarter fiscal 2027 results highlighted a key differentiator in today’s retail environment — customer traffic. The company reported a 6% comparable sales increase, supported by growth in customer transactions across all major business segments, indicating continued strength in shopper visits.
What makes this performance particularly noteworthy is its breadth. Management highlighted that demand remained remarkably consistent across income groups, suggesting that TJX is not relying on a single consumer segment for growth. Instead, its value-focused offering continues to attract shoppers across a wide range of spending levels, reinforcing the broad appeal of the off-price retail model.
The company’s merchandising strategy appears to be playing a key role in supporting traffic. TJX emphasized its ability to remain flexible, respond quickly to trends and offer compelling branded merchandise at attractive prices. Frequent inventory refreshes and an ever-changing assortment help create the treasure-hunt shopping experience that encourages repeat visits and drives customer engagement.
Another positive takeaway was the consistency of customer demand across regions. Healthy sales growth in the United States, Canada, Europe and Australia suggests that traffic momentum is not tied to any single market. This broad-based performance highlights the strength of TJX’s off-price model and its ability to attract customers across diverse geographies.
For TJX, sustaining traffic will depend on continuing to deliver value, freshness and excitement in its merchandise assortment. The latest quarter suggests these factors remain firmly in place, helping the retailer maintain strong customer engagement across markets and demographics.
TJX, ROST and BURL Show Traffic StrengthRoss Stores, Inc. (ROST - Free Report) also delivered strong traffic-led growth in the first quarter of fiscal 2026. Ross Stores reported a 17% comparable sales increase, driven primarily by higher transactions and customer-count growth across income levels, age groups and ethnicities. Management noted that Ross Stores has now posted transaction-driven comparable sales growth for three consecutive quarters, supported by customer acquisition efforts, marketing initiatives and compelling merchandise assortments.
Burlington Stores, Inc. (BURL - Free Report) also demonstrated solid customer demand trends in the first quarter of fiscal 2026. Burlington Stores reported 6% comparable sales growth, with management highlighting positive customer metrics across demographics and income bands. Despite macroeconomic uncertainty, Burlington Stores continued to see resilient shopper engagement, supported by its value-focused merchandise offering and improved store experience initiatives.
TJX’s Price Performance, Valuation and EstimatesShares of The TJX Companies have gained 4.8% in the past month against the industry’s decline of 0.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 30.15X, down from the industry’s average of 31.29X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TJX’s current and next fiscal year earnings per share implies a year-over-year rise of 8.9% and 9.8%, respectively.
Image Source: Zacks Investment Research
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FRAMINGHAM, Mass.--(BUSINESS WIRE)--The TJX Companies, Inc. (NYSE: TJX) today announced the declaration of a quarterly dividend on its common stock of $.48 per share payable September 3, 2026, to shareholders of record on August 13, 2026.
About The TJX Companies, Inc.
The TJX Companies, Inc., a Fortune 100 company, is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. Our mission is to deliver great value to customers every day. We do this by offering a rapidly changing assortment of quality, fashionable, brand name, and designer merchandise at prices generally 20% to 60% below full-price retailers’ regular prices on comparable merchandise. We operate over 5,200 stores across ten countries, including TJ Maxx, Marshalls, HomeGoods, Homesense, and Sierra in the U.S.; Winners, HomeSense, and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia. We also operate e-commerce sites for TJ Maxx, Marshalls, and Sierra in the U.S. and three sites for TK Maxx in Europe. Our value mission extends to our corporate responsibility efforts, which are focused on supporting our Associates, giving back in the communities we serve, the environment, and operating responsibly. Additional information about TJX’s press releases, financial information, and corporate responsibility are available at TJX.com.
Important Information at Website
The Company routinely posts information that may be important to investors in the Investors section at TJX.com. The Company encourages investors to consult that section of its website regularly.
Well before market open on Tuesday, a global bank reiterated its bullish view on retailer TJX Companies (TJX +0.04%). Clearly taken by this assessment, investors pushed into the T.J. Maxx and Marshalls owner's equity, boosting it more than 3% higher across that day's trading session.
It remains a clear buy, says pundit The analyst behind the update was UBS prognosticator Jay Sole, who maintained his buy recommendation and $197 per share price target on TJX. That's more than 19% above the stock's latest closing price.
Image source: Getty Images.
According to reports, Sole cited findings in the latest version of his bank's annual U.S. Off-Price and Department Store Retailers Consumer Survey as a core reason for his continued bullishness. He wrote that the survey indicated that 71% of polled consumers believe the company's flagship T.J. Maxx stores offer good value for money. That figure is well higher than the roughly 47% for Macy's and other prominent department stores.
The analyst also pointed to data indicating that customers frequenting T.J. Maxx anticipate a 14% net increase in shopping frequency over the next year. That compared very favorably to the -1% average of the overall survey. In Sole's view, traffic is the main driver of a discount retailer's comparable sales growth, a crucial metric in the retail industry.
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The right retailer at the right time TJX has posted some impressive results lately. Its "comps" rose by 6% year over year in its first quarter of fiscal 2027, and net sales advanced by a meaty 9% to more than $14 billion. Better, adjusted earnings per share soared by 29% to nearly $1.19, crushing the consensus analyst estimate. With these considerable tailwinds at its back, the company raised its comparable sales and EPS guidance for the full fiscal year.
The current economic uncertainty in the U.S. is generally favoring discount retailers, and TJX is proving very adept at navigating this moment. I'm becoming increasingly bullish on this company, and investors should too.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TJX Companies. The Motley Fool has a disclosure policy.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about TJX (TJX - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
TJX currently has an average brokerage recommendation (ABR) of 1.22, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.22 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 20 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 87% and 4.4% of all recommendations.
Brokerage Recommendation Trends for TJX
Check price target & stock forecast for TJX here>>>
The ABR suggests buying TJX, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is TJX a Good Investment?Looking at the earnings estimate revisions for TJX, the Zacks Consensus Estimate for the current year has increased 1.9% over the past month to $5.15.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for TJX. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for TJX may serve as a useful guide for investors.
TJX (TJX - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Over the past month, shares of this parent of T.J. Maxx, Marshalls and other stores have returned +14%, compared to the Zacks S&P 500 composite's -1.6% change. During this period, the Zacks Retail - Discount Stores industry, which TJX falls in, has gained 1.5%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, TJX is expected to post earnings of $1.17 per share, indicating a change of +6.4% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.
The consensus earnings estimate of $5.17 for the current fiscal year indicates a year-over-year change of +9.3%. This estimate has changed +2.2% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $5.67 indicates a change of +9.7% from what TJX is expected to report a year ago. Over the past month, the estimate has changed +2.1%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, TJX is rated Zacks Rank #2 (Buy).
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of TJX, the consensus sales estimate of $15.12 billion for the current quarter points to a year-over-year change of +5%. The $63.87 billion and $67.4 billion estimates for the current and next fiscal years indicate changes of +5.8% and +5.5%, respectively.
Last Reported Results and Surprise HistoryTJX reported revenues of $14.32 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $1.19 for the same period compares with $0.92 a year ago.
Compared to the Zacks Consensus Estimate of $14 billion, the reported revenues represent a surprise of +2.32%. The EPS surprise was +17.82%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
TJX is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about TJX. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.
Have you been paying attention to shares of TJX (TJX - Free Report) ? Shares have been on the move with the stock up 14% over the past month. The stock hit a new 52-week high of $167.92 in the previous session. TJX has gained 9.2% since the start of the year compared to the -0.5% move for the Zacks Retail-Wholesale sector and the 13.5% return for the Zacks Retail - Discount Stores industry.
What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 20, 2026, TJX reported EPS of $1.19 versus consensus estimate of $1.01.
For the current fiscal year, TJX is expected to post earnings of $5.17 per share on $63.87 in revenues. This represents a 9.3% change in EPS on a 5.8% change in revenues. For the next fiscal year, the company is expected to earn $5.67 per share on $67.4 in revenues. This represents a year-over-year change of 9.73% and 5.52%, respectively.
Valuation MetricsWhile TJX has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
TJX has a Value Score of F. The stock's Growth and Momentum Scores are A and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 32.4X current fiscal year EPS estimates, which is a premium to the peer industry average of 28.2X. On a trailing cash flow basis, the stock currently trades at 27.4X versus its peer group's average of 21.2X. Additionally, the stock has a PEG ratio of 3.63. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, TJX currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TJX meets the list of requirements. Thus, it seems as though TJX shares could have a bit more room to run in the near term.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +23.7% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. TJX has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.3% for the current fiscal year.
Seven analysts revised their earnings estimate upwards in the last 60 days for fiscal 2027. The Zacks Consensus Estimate has increased $0.11 to $5.17 per share. TJX boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, TJX should be on investors' short list.
Key Takeaways TJX reached a 52-week high after gaining 35.8% in the past year and outperforming key benchmarks.TJX's off-price model drove 6% comparable sales growth, with higher transactions and basket sizes.TJX added 48 net new stores and sees expansion opportunities across Europe and Australia. The TJX Companies, Inc. (TJX - Free Report) recently reached a new 52-week high, a notable milestone that has grabbed investors' attention. The company's solid execution, resilient off-price business model and expansion initiatives have fueled the stock's strong performance, leaving investors wondering whether it is still worth buying.
In the past year, TJX stock has surged 35.8%, outpacing the Zacks Retail - Discount Stores industry, the broader Retail and Wholesale sector and the S&P 500, which have gained 15.1%, 5.4% and 25.1%, respectively.
TJX Price Performance vs. Industry, S&P 500 & Sector
Image Source: Zacks Investment Research
The TJX Companies has also outperformed its key competitors, such as Target Corporation (TGT - Free Report) , Dollar Tree, Inc. (DLTR - Free Report) and Dollar General Corporation (DG - Free Report) . Over the past year, Target, Dollar Tree and Dollar General posted gains of 33.6%, 19.6% and 2.3%, respectively.
Technical indicators also point to continued strength. TJX currently trades above both 50 and 200-day moving averages, signaling sustained upward momentum and reinforcing investors' confidence in its long-term growth prospects.
TJX’s Off-Price Strength and Expansion Strategy Support GrowthTJX’s off-price retail model continues to be a key competitive advantage, enabling it to attract consumers across income groups through a combination of branded merchandise, attractive pricing and a treasure-hunt shopping experience. In the first quarter of fiscal 2027, comparable sales increased 6%, driven by both higher customer transactions and larger basket sizes. Management noted that all divisions delivered transaction growth, highlighting the broad appeal and resilience of the company’s value-focused business model.
The company is also benefiting from exceptional merchandise availability and its extensive global sourcing network. With more than 1,400 buyers and strong vendor relationships, TJX remains well-positioned to secure quality branded products at attractive prices. Management emphasized that merchandise availability remains outstanding, allowing the retailer to maintain fresh assortments, respond quickly to consumer trends and capitalize on buying opportunities that support both sales growth and margin expansion.
TJX’s growth strategy extends beyond merchandising strength, supported by continued store expansion and market-share gains. The company ended the fiscal first quarter with 5,262 stores worldwide after adding 48 net new locations. Management remains optimistic about expansion opportunities across Europe and Australia while pursuing growth initiatives in newer markets such as Spain and Mexico. The retailer believes it still has a substantial runway to increase global footprint and deepen presence across key markets.
TJX’s operational flexibility remains a major competitive advantage. Its fast-turning inventory model allows the company to quickly capitalize on emerging trends, adjust merchandise assortments and pursue high-demand categories. This agility supports strong customer traffic, healthy merchandise margins and continued market-share gains, while helping TJX maintain a fresh and compelling shopping experience that encourages repeat visits across its retail banners.
How Are Estimates Stacking Up for TJX?Reflecting the positive sentiment around TJX, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past seven days, earnings per share estimates for fiscal 2027 and 2028 have increased 2 cents and 1 cent to $5.17 and $5.67, respectively.
Image Source: Zacks Investment Research
How Does TJX’s Valuation Look?TJX is currently trading at a slight discount to its industry benchmarks. The company’s forward 12-month price-to-earnings (P/E) multiple of 31.55X is slightly lower than the industry average of 31.92X. Among peers, Target, Dollar Tree and Dollar General trade at significantly lower valuations, with forward P/E multiples of 15.52X, 15.89X and 15.18X, respectively.
TJX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
The TJX Companies Navigates Key Challenges AheadTJX operates in a highly competitive retail environment, where maintaining its value proposition may require continued investments in pricing, marketing and store operations. While the company has successfully gained market share through its off-price model, competition from both traditional retailers and e-commerce players remains intense. In addition, cost inflation across labor, sourcing and logistics could pressure profitability and limit future margin expansion.
The retailer is also exposed to macroeconomic and international risks due to its extensive global footprint. Fluctuations in foreign exchange rates, evolving trade policies and tariff-related uncertainties could affect profitability and sourcing costs. While management remains confident in the resilience of the off-price model, changes in consumer spending patterns, economic slowdowns in key markets and persistent cost inflation could pressure future results and moderate earnings growth.
TJX’s Investment AnalysisTJX’s recent 52-week high reflects the strength of its off-price business model, consistent execution and ability to gain market share in a challenging retail environment. The company continues to benefit from strong customer traffic, strong merchandise availability and significant expansion opportunities across global markets. While higher costs, foreign exchange fluctuations and macroeconomic uncertainties remain risks, TJX’s solid fundamentals and positive earnings outlook support its long-term growth story. With a Zacks Rank #2 (Buy), the stock remains a compelling choice for investors seeking steady growth and resilience in the retail sector.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: TJX (TJX - Free Report) Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies emphasizes a frequent flow of fresh merchandise to stores and online. As of Jan. 31, 2026, the company operated a total of over 5,214 stores across the United States, Canada, the United Kingdom, Europe and Australia.
TJX is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. TJX has a Momentum Style Score of B, and shares are up 14.2% over the past four weeks.
For fiscal 2027, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $5.17 per share. TJX boasts an average earnings surprise of +8.8%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TJX should be on investors' short list.
