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Framingham, Massachusetts-based The TJX Companies, Inc. (TJX) operates as an off-price apparel and home fashion retailer in the United States, Canada, Europe, and Australia. With a market cap of $132.5 billion, the company operates through Marmaxx, HomeGoods, TJX Canada, and TJX International segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," and TJX Companies fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the apparel retail industry. The retailer attracts consumers by providing a wide range of products and a rapid turn of inventories.
However, TJX is down 3.2% from its 52-week high of $121.13, achieved on Aug. 28. Despite this pullback, TJX stock has gained 13.5% over the past three months, outpacing the Dow Jones Industrials Average’s ($DOWI) 9.1% gains during the same time frame.
Over the longer term, TJX stock has rallied 25% on a YTD basis, outpacing DOWI’s return of 10.3%. Moreover, TJX Companies has surged 28.9% over the past 52 weeks, compared to DOWI’s 19.3% gains over the past year.
To confirm the bullish trend, TJX has been consistently trading above its 200-day moving average and mostly above its 50-day moving average, with few fluctuations since last year.
On June 7, TJX Companies announced its definitive agreement for a joint venture with Grupo Axo. The completion of this deal would help the company expand its reach in Mexico through Axo’s extensive network of physical stores.
Shares of TJX Companies rose 6.1% on Aug. 21 following the Q2 earnings report. TJX Companies reported a robust 5.6% annual growth in net sales, reaching $13.5 billion, and an impressive 11.1% growth in net income, reaching $1.1 billion. Moreover, the company repurchased 5.1 million shares for $559 million, demonstrating its commitment to shareholders.
TJX Companies’ rival, Ross Stores, Inc. (ROST), has underperformed TJX. ROST gained 8.8% in 2024 and 24.5% over the past year, trailing behind TJX’s performance.
Due to TJX’s outperformance, analysts are optimistic about the stock’s prospects. Among the 24 analysts covering TJX, the consensus rating is a “Strong Buy.” The mean price target of $128.63 represents a potential upside of 9.7% from current price levels.
On the date of publication, Aditya Sarawgi 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.
