The TJX Companies, Inc. (TJX), with a market cap of $110.7 billion, is a top off-price retailer of apparel and home fashions globally headquartered in Massachusetts. It owns popular discount retail stores like T.J. Maxx, Marshalls and, HomeGoods and appeals to a wide consumer base with varied product assortments at different price points and rapid inventory turnover.
Shares of TJX have slightly lagged behind the broader market over the past year. While TJX has surged 23.1% over this time frame, the broader S&P 500 Index ($SPX) is up 26.9%. In 2024, the stock has soared 4.2%, lower than SPX’s YTD return of 11.6% over the same time frame.
Despite trailing the broader market, TJX's double-digit return surpasses the Vaneck Retail ETF (RTH), which gained 20.2% over the past year, highlighting TJX's strong position and competitive advantage within the retail sector.
U.S. consumers continue their bargain-hunting habits despite inflation easing and a rise in discretionary spending, which benefits discount giant TJX. Moreover, TJX’s shares were on an upswing for the week following May 2, when Barron's highlighted its long-standing market share growth among discount retailers in an article.
For the current fiscal year, ending in January 2025, analysts expect TJX’s EPS to improve 9% year over year to $4.10. Plus, the company's earnings surprise history is solid. It beat or matched the consensus estimate in all of the last four quarters.
TJX’s stock has a consensus “Strong Buy” rating overall. Out of 24 analysts covering the stock, 22 rate it as a "Strong Buy," and the remaining two recommend a "Hold."
This configuration is slightly more bullish than a month before, with 20 analysts advising a "Strong Buy."
On May 17, TD Cowen analyst John Kernan raised the price target on TJX to $120 from $119, maintaining a “Buy” rating on the shares. They are optimistic about TJX's prospects, citing strong proprietary visitation survey data for its banners and suggesting it could exceed same-store-sales expectations and potentially increase its full-year 2025 EPS guidance at the lower end.
The mean price target of $111.47 suggests a 14.1% premium to TJX from current levels. The Street-high target of $132 represents an upside potential of 35.1%.
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.
