TJX is Thursday's IBD Stock Of The Day. The off-price retail giant jumped back into a buy zone on the strength of last week's earnings beat and a number of analyst price-target hikes. Strong results from peer Burlington Stores also helped.
As TJX advanced Thursday, giving investors an entry opportunity, fellow discounters Target, BJ's Wholesale Club and Ross Stores made gains. So did Costco Wholesale, which reports Thursday night.
Since reporting fiscal 2025 first-quarter earnings and revenue last week, TJX stock has gained 6%. On May 22, TJX reported a 22% earnings increase to 93 cents per share, which beat analyst views of 88 cents and marked seven straight quarters of growth. Net sales climbed for the sixth quarter in a row and matched forecasts with a 6% increase to $12.48 billion.
TJX also announced its Q1 2025 consolidated comparable sales rose 3%, driven by a 4% increase at U.S. HomeGoods stores and TJX locations in Canada.
The company guided comparable sales to grow 2% to 3% for both the second quarter and the 2025 fiscal year. TJX expects Q2 earnings of 88 cents to 90 cents per share, below analyst forecasts of 94 cents.
The full-year earnings range of $4.03 to $4.09 per share was also shy of expectations of a 6.5% increase to $4.11 per share.
TJX Stock Performance
Shares of TJX advanced 1.9% to 103.38 during market trade on Thursday. The stock is now back in a buy zone from an official entry of 1o2.04 in a double-bottom base pattern, according to MarketSurge analysis.
TJX stock has gained 9.7% in May and has advanced 10% in 2024.
Shares broke out above that 102.04 buy point on May 22, hitting a record high of 104.98 intraday, after the company's Q1 report. TJX has averaged around 23% earnings growth over the past three quarters.
Following TJX's Q1 earnings, the stock was handed a slew of price-target increases.
Wells Fargo raised its price target on TJX to 100 from 98 while maintaining an equal weight rating. Meanwhile, Barclays hiked its price target to 114 from 109. Baird analyst Mark Altschwager also increased his price target on TJX to 113 from 110.
Bernstein analysts said last week that TJX can "bend the curve" to drive a structurally higher profit per share. That firm raised its price target to 120 from 115.
Other Discounters
Burlington Stores' earnings per share jumped 61% vs. a year earlier, the off-price apparel retail announced Thursday morning. Sales and guidance also were strong. Burlington stock gapped up 17.5% to clear a 232.69 cup-base buy point.
Ross Stores stock climbed 0.5% to 139.84. The rival to TJX and Burlington appears to be working on a handle that preceded last week's earnings gap-up.
Target stock rose 1.5%, booking its fifth straight advance after it tumbled 8% on earnings.
Costco stock advanced 1.1% to 815.34, still in range of a 787.08 cup-base buy point. The warehouse giant reports Thursday night.
TJX stock has a solid 94 Composite Rating out of a best-possible 99. The shares have an 80 Relative Strength Rating and a 94 EPS Rating.
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