Valued at a market cap of $141.8 billion, The TJX Companies, Inc. (TJX) operates as an off-price apparel and home fashions retailer. The Framingham, Massachusetts-based company sells family apparel, including footwear and accessories; home fashion, such as home basics, furniture, and rugs; jewelry and accessories; and other merchandise.
Companies worth $10 billion or more are typically considered “large-cap stocks,” and TJX fits this category comfortably, with a market cap well above this threshold. The company's broad range of assortments at varying prices helps it reach out to a wide range of consumers. It has been able to distinguish itself from others on the grounds of opportunistic buying strategies, a flexible business model, and a low-cost structure.
The apparel retail company has marginally declined from its 52-week high of $128, achieved on Nov. 27. Moreover, shares of TJX have gained 7.6% over the past three months, lagging behind the broader Consumer Discretionary Select Sector SPDR Fund’s (XLY) 19.8% gains over the same time frame.
Nonetheless, in the longer term, TJX has gained 34.5% on a YTD basis, outperforming XLY’s 25.4% returns. Moreover, shares of TJX have rallied 41.7% over the past 52 weeks, outperforming XLY’s 31.1% gains over the same time frame.
To confirm its bullish trend, TJX has been trading above its 200-day moving average for the past year and has remained above its 50-day moving average since early November.
On Nov. 20, shares of TJX increased marginally and closed up for five consecutive trading sessions after its better-than-expected Q3 earnings release. Its revenue grew 6% year-over-year to $14.06 billion and slightly surpassed the Wall Street estimates of $13.96, while its adjusted EPS of $1.14 outpaced the consensus estimates of $1.09 and increased 10.7% from a year ago.
The company primarily benefited from robust growth in its international segment coupled with strong gross margin and pre-tax profit margin expansion. It's raised the full-year 2025 EPS, and pretax profit margin guidance might have further bolstered investor confidence.
Moreover, its rival, Ross Stores, Inc. (ROST), has gained 18.3% over the past 52 weeks and increased 13% on a YTD basis, significantly lagging behind TJX’s gains over both time frames.
Despite TJX’s recent underperformance relative to the broader sector, analysts remain strongly optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from the 22 analysts covering it, and the mean price target of $131.90 suggests a 4.5% premium to its current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here. More news from Barchart- Top 100 Stocks to Buy: Toast's Journey Back to $60 Appears Promising
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