TJX Cos stock rose above the 121.13 buy point of a flat base Wednesday. That was also its previous high, set on Aug. 28. The highly ranked off-price clothing chain continues to put up double-digit earnings growth rates and post steady sales growth numbers.
TJX has been a "Steady Eddie" stock over the years. It dipped to an intraday low 32.72 at the end of March 2020 during the Covid market crash. It soared to 82.72 in January 2023, and Wednesday traded at 121.39, up 1.3% for the day and about 372% above its 2020 low.
TJX is an apparel conglomerate. Its brands include its namesake as well as TJ Maxx, TK Maxx, Marshalls, Sierra, Winners and Homesense. It operates more than 5,000 stores in nine countries.
TJX RS Rating Upgraded, Other Ratings Strong
On Wednesday the Framingham, Mass.-based company's stock got a Relative Strength (RS) Rating upgrade from 66 to 73 Wednesday — a welcome improvement, but still shy of the 80 or better score that The IBD Methodology investors look for.
However, its other ratings are outstanding. It has a terrific 92 EPS Rating out of 99 and an 87 Composite Rating. Its B+ Accumulation/Distribution Rating shows that mutual funds, ETFs and the like are buying more shares than selling.
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TJX reported 13% EPS growth to 98 cents last quarter on a 6% rise in revenue to $13.5 billion. The prior three quarters, EPS rose 20%, 26% and 22%. The company says on its website it will announce third quarter results on Nov. 20. Look for a return to higher earnings and sales growth rates.
Among Top 5 In Large Apparel Group
TJX holds the No. 3 rank among its peers in the 32-stock Retail-Apparel/Shoes/Accessories industry group. Revolve Group is the top-ranked stock in the group.
IBD's unique Relative Strength Rating identifies market leadership by showing how a stock's price movement over the last 52 weeks compares to that of the other stocks in our database. The best-performing stocks typically have an RS Rating north of 80 as they launch their biggest climbs. See if TJX can continue to rebound and hit that benchmark.
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