TJX Companies: Resilient Performance Amid Market Challenges

With a current market capitalization of $136.9 billion, The TJX Companies, Inc. (TJX) stands as a significant player in the off-price apparel and home fashion retail sector. Headquartered in Framingham, Massachusetts, TJX operates through four primary segments: Marmaxx, HomeGoods, TJX Canada, and TJX International.

Described as a “large-cap stock,” TJX fits firmly into the category of companies with valuations over $10 billion. This multinational retailer has carved out a niche by offering its products through both brick-and-mortar stores and online platforms. It operates over 5,000 stores across nine countries, providing exceptional value to a diverse customer base.

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Recently, TJX saw a 4.9% decline from its 52-week high of $128. Over the past three months, the stock has dropped 3%. In comparison, the SPDR S&P Retail ETF (XRT) experienced a more pronounced decline, falling 15.6% during the same period.

On a year-to-date (YTD) basis, TJX’s performance shows marginal improvement, contrasting the 11% drop of the XRT. Over the last 52 weeks, TJX has gained 24.3%, while XRT has decreased by 7.7% in the same timeframe.

Importantly, TJX has maintained its trading position above both its 200-day and 50-day moving averages, despite noticeable fluctuations in stock price.

After surpassing Wall Street expectations, TJX reported Q4 2024 earnings of $1.23 per share alongside record revenue of $16.4 billion. Following this announcement on February 26, the stock rose by 1.8%. The company achieved a pretax profit margin of 11.6%, attributed to better cost management and reduced inventory shrink rates. Furthermore, TJX enhanced shareholder value with a 13% increase in its dividend and announced a stock buyback program ranging from $2 billion to $2.5 billion for fiscal 2026. The company anticipates full-year fiscal 2026 earnings between $4.34 and $4.43 per share.

When compared to its competitor, The Gap, Inc. (GAP) has underperformed. Over the past 52 weeks, GAP gained only 4.5% and faced a 14.9% decline on a YTD basis.

Given TJX’s strong performance relative to its industry peers, analysts remain optimistic about its future prospects. There is a consensus “Strong Buy” rating among the 22 analysts covering TJX. Currently, TJX is trading under the average price target of $139.31.

On the date of publication, Sohini Mondal did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are intended for informational purposes only. For further details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.