/TJX%20Companies%2C%20Inc_%20phone%20and%20website%20by-%20T_Schneider%20via%20Shutterstock.jpg)
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.
