TJX Companies Stock: Is Wall Street Bullish or Bearish?

Valued at a market cap of $128.3 billion, Framingham, Massachusetts-based The TJX Companies, Inc. (TJX) is a leading off-price retailer of apparel and home fashions. Operating across the U.S., Canada, Europe, and Australia, it serves customers through brands like T.J. Maxx and HomeGoods, offering a wide range of discounted, high-quality merchandise.

Shares of the off-price retail company have underperformed the broader market over the past 52 weeks. TJX has returned 29.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 32.7%. However, in 2024, TJX shares have increased 25.3%, outpacing SPX’s 21.2% gain on a YTD basis.

Zooming in further, TJX has slightly lagged behind the Consumer Discretionary Select Sector SPDR Fund’s (XLY) 29.5% rise over the past 52 weeks. But, the stock has outpaced XLY’s 16.2% YTD gain.

TJX Companies' stock jumped 6.1% on Aug. 21 after it reported a 13% year-over-year increase in Q2 earnings, reaching $0.96 per share, surpassing expectations. The company raised its full-year EPS guidance to $4.09 - $4.13, up from the previous range, signaling strong future profitability. Additionally, TJX exceeded revenue expectations with net sales of $13.5 billion, driven by increased customer transactions across its divisions, further bolstering investor confidence. The milestone of opening its 5,000th store and positive momentum heading into the fall and holiday seasons also contributed to investor optimism.

For the current fiscal year, ending in January 2025, analysts expect TJX’s EPS to grow 10.4% year-over-year to $4.15. The company’s earnings surprise history is promising. It beat or met the consensus estimates in the last four quarters.

Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 21 “Strong Buy” ratings and three “Holds.”

This configuration is slightly less bullish than three months ago, with 22 “Strong Buy” ratings on the stock.

On Aug. 22, UBS raised its price target on TJX to $148 - the Street-high price target, maintaining a “Buy” rating, and highlighted the company's potential to gain market share from department stores and grow through businesses like HomeSense, Sierra Trading Post, and its international operations. This implies a potential upside of 30.1% from the current price.

The mean price target of $129.41 represents a premium of 13.8% to TJX’s current levels.

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On the date of publication, Sohini Mondal 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.

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