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The TJX Companies, Inc. (TJX), boasting a market cap of $127.9 billion, is a leading global off-price retailer specializing in apparel and home fashions. Headquartered in Massachusetts, TJX operates well-known discount stores such as T.J. Maxx, Marshalls, and HomeGoods. The company attracts a broad consumer base by offering various products at various price levels and maintaining a quick inventory turnover.
Over the past year, TJX shares have outperformed the broader market, climbing 32.2% compared to the S&P 500 Index ($SPX), which rose 18.5%. In 2024, TJX's stock has impressively surged 20.6%, outstripping SPX's gains of 12.1% on a YTD basis.
Zooming in further, TJX's stellar double-digit returns have exceeded the Vaneck Retail ETF’s (RTH) 13.9% gains over the past 52 weeks.
TJX stock has outperformed the market this year due to increased consumer traffic at off-price retailers, limited clearance sales indicating strong performance, and a broader trend of consumers favoring off-price options amid uncertain economic conditions and evolving fashion trends. Besides, the company is also benefiting from its solid store and e-commerce growth efforts.
For the current fiscal year, ending in January 2025, analysts expect TJX’s EPS to improve 8.8% year over year to $4.09. Additionally, the company's earnings surprise history is impressive. It beat or matched the consensus estimate in all of the last four quarters.
TJX’s stock has a consensus “Strong Buy” rating overall. Among the 24 analysts covering the stock, 22 have assigned it a "Strong Buy" rating, while the remaining two recommend a “Hold.”
This configuration has been consistent for the past months.
On July 18, Morgan Stanley (MS) raised TJX's price target to $122 from $113 and maintained an “Overweight” rating. The firm views TJX as the preferred off-price retailer with the potential for further valuation growth due to its higher profitability.
The mean price target of $115.63 suggests a 2.2% premium to TJX from current levels. The Street-high target of $134 represents an upside potential of 18.4%.
On the date of publication, Kritika Sarmah 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.
