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Opinions Stephanie Link, Chief investment strategist, Hightower
TJX CompaniesTJXBUY ON WEAKNESSDec 22, 2023
Stock price when the opinion was issued
As of Jun 18, 2026. Market Open.
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Made a new high today. Strong earnings and good performance. Happy to own it.
Joe Terranova
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Premium contentLast month, TJX's $0.76 beat the street's $0.71, though revenues just missed the hoped-for $11.82 billion by a hair. TJX trades at 23.44x, which is right below its five-year median and well below its five-year mathematical average of 88.93x. Its beta of 0.91 offers some stability, though it pays only a 1.73% dividend yield, not ideal for Canadian income seekers. However, TJX keeps delivering , boasting three beats and one in-line quarter in the past year. Shipping rates have declined and foot traffic is up, and should rise this summer. Stockchaser Trevor Rose feels optimistic about the company's outlook.
TJX reported EPS of $0.76 vs $0.71 expected. Revenues of $11.78 mln were just shy of expectations at $11.82 mln, but essentially in-line and raised their annual profit guidance. The quarter was helped by freight rates coming down and they also noted an uptick in traffic recently. The results looked fine here and the outlook sounds optimistic even in the face of a more conservative expectation for Q2.
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Major player in discount retail business.
Believes large market for small purchases in retail sector.
Not worried about the threat of online shopping.
Lots of shoppers still spending money on discount items.
Brendan CaldwellPremium contentProblem is, the street already knows this and has driven up TJX shares near 52-week highs from $56 to $80 in the last quarter. The stock has settled around $80 for the past month. However, there's still some room to grow because of this recessionary tailwind. Company earnings are expected to rise 40% in coming years, so there's a lot of optimism in this name. Its loyalty card program continues to attract customers across various demographics including Gen Z'ers and millennials who enjoy treasure hunting among the hand-me-down wares. The company is expanding, but not recklessly, increasing square footage by 1% quarter-over-quarter most recently.
Not a cheap stock, but are benefitting from excess inventory of recent years. They increased their comp guidance last quarter from 3-4% to 4-5%, unheard of for them. Has owned this forever. They have pricing power. Buy on the day they report earnings, because it always sells on the news.