The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise. It offers its products through stores and e-commerce sites. The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts.

TJX looks like a high-quality retailer with very strong operating efficiency, but the market has already priced this in generously. Profitability is impressive: ROE of 59.66%, ROA of 16.54%, ROI of 48.97%, and return on tangible equity of 60.34% are noticeably above the industry median, while net profit margin of 9.40% and operating margin of 12.69% are also stronger than the sector. At the same time, the year-over-year trend is generally positive: operating margin, net margin, revenue, EBITDA, and earnings are all growing, which supports the valuation premium. On the other hand, gross margin of 32.0% is below the industry median, indicating limited pricing power and reliance on purchasing efficiency. Valuation multiples remain high: P/E of 24.8, P/S of 2.41, P/B of 13.84, and P/FCF of 25.61 are all significantly above the industry median, so part of the good news is already reflected in the price. What is especially concerning is the very expensive P/B ratio, which remains elevated even with strong growth in equity. Debt burden, by contrast, is comfortable: debt/equity of 0.18 is below the industry level, debt has declined over recent periods, and cash on hand of around $6.0 billion supports financial stability. Liquidity is not ideal, because the quick ratio of 0.54 and current ratio of 1.14 are below the median, but for a retailer this does not look critical given stable cash flow. Dividend yield of 0.31% is very low and has almost no impact on the investment case, so the stock remains more of a growth-and-quality story than a yield story. Growth in revenue, earnings, and equity confirms the underlying strength of the business, but the pace no longer looks strong enough to justify an aggressive upward revision. Overall, the fundamentals support the current high valuation, but the premium to the sector on key multiples and the weak gross margin limit further upside potential. For an investor, this means a high-quality, resilient business, but one with a fairly stretched valuation, so only a modest conservative downward adjustment to the forecast is appropriate.

TJX Companies, Inc. (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

TJX demonstrates strong profitability and earnings growth with low debt, but its high valuation multiples and weak liquidity limit the upside.

A downtrend has been apparent in TJX (TJX) lately with too much selling pressure. The stock has declined 17.8% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Here's Why TJX Could Experience a Turnaround
The heavy selling of TJX shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 17.78. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering TJX in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 0.6% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, TJX currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

TJX (TJX) Loses 17.8% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

The TJX Companies, Inc. TJX has lifted its long-term global store target by 500 locations to 7,500 stores across its existing retail banners and current 10 countries in the latest earnings update. The company ended the second quarter of fiscal 2027 with 5,285 stores, leaving room for more than 2,200 additional locations under the revised target.
The expansion is centered partly on the U.S. business. TJX now sees TJ Maxx and Marshalls reaching a combined 3,300 stores, an increase of 300 from its prior long-term potential. The HomeGoods division’s long-term target has also been increased by 200 stores to 2,000.
The company plans to accelerate annual store opening growth to 4% beginning in fiscal 2028, up from the previously discussed 3% pace. Several factors support the higher target. Marmaxx has opportunities in rural markets where department stores are closing, while sustained comparable-store growth has created scope to place stores closer together than previously expected. Smaller-format stores also allow expansion in densely populated urban areas.
New stores have been exceeding expectations for an extended period. The additional store growth is expected to be broad-based across the company’s brands rather than concentrated in only one or two divisions. TJX Companies also expects sufficient availability of quality merchandise to support the expansion plans as it moves toward the higher store target and faster opening pace.
How TJX Stacks Up Against ROST and BURL on Store Growth
Ross Stores ROST is also stepping up physical expansion, raising its 2026 new-store opening plan to 115 locations from 110. This includes about 90 Ross Dress for Less and 25 dd’s DISCOUNTS stores. Ross Stores opened 47 stores in the second quarter of fiscal 2026. Ross Stores also targets roughly 5% annual unit growth, while recent openings in existing and newer markets have been running ahead of plan.
Burlington Stores, Inc. BURL is also pursuing aggressive store expansion, ending the second quarter of fiscal 2026 with 1,287 locations. Burlington Stores expects about 115 net new stores in fiscal 2026, while 149 net new stores opened over the past 12 months, representing 13% store-count growth. Burlington Stores remains confident in opening at least 110 net new stores annually and reaching, or likely exceeding, 1,500 stores by end-2028.
TJX’s Price Performance, Valuation and Estimates
Shares of TJX Companies have fallen 16.8% in the past month compared with the industry’s decline of 6.2%.
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 23.88X, down from the industry’s average of 27.82X.
The Zacks Consensus Estimate for TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 1 cent to $5.22 and $5.74, respectively, in the past seven days.
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TJX Companies Raises Store Target to 7,500: Is Growth Sustainable?

Buy low, sell high. Those four words can make fortunes over time. And they work whether we're talking about real estate, stocks, or any other asset.
The great thing about investing in some stocks when they're down is that they pay you to wait for a rebound via dividends. Here are three dividend stocks trading near their 52-week lows.
1. Baxter International
Baxter International (NYSE: BAX) shares aren't just at their 52-week lows; they're at the lowest level in the last six years. The healthcare stock has lost roughly half of its value over the past 12 months.
The company's acquisition of Hill-Rom in late 2021 hasn't worked out as well as hoped. Baxter recorded an impairment of $3.1 billion related to the purchase in the third quarter of 2022.
Instead of adding new businesses, Baxter is now looking to pare down. It plans to spin off its renal care and acute therapies units into a separate publicly traded company over the next 12 to 18 months. The company is also exploring alternatives, including a sale or spinoff of its biopharma solutions business.
One bright spot for Baxter amid the generally bad news, though, is its dividend. The company has increased its dividend for seven consecutive years. Its dividend yield currently stands at close to 2.6%.
2. CVS Health
CVS Health (NYSE: CVS) fared better than most stocks last year, sliding less than 10%. However, the stock is near its 52-week low now after a big decline that began in December.
But CVS Health's business continues to perform relatively well. Total revenue in Q3 jumped 10% year over year to $81.2 billion. Although the company posted a net loss in the quarter, the culprits were $5.2 billion in opioid litigation charges and $2.5 billion related to plans to sell the Omnicare long-term care pharmacy business.
Despite the pending sale of Omnicare, CVS Health remains in growth mode. It expects to close on the acquisition of Signify Health, a provider of home health and healthcare technology services, in the first half of 2023. Earlier this month, rumors swirled that CVS could be interested in buying Oak Street Health. Whether a deal actually materializes remains to be seen.
There isn't any uncertainty about CVS Health's dividend, though. The company's dividend yield tops 2.7%. CVS didn't increase its dividend for several years because of its acquisition of Aetna. However, it has increased the dividend payout by 21% since late 2021.
3. L3Harris Technologies
It isn't just healthcare dividend stocks that are languishing these days. Shares of L3Harris Technologies (NYSE: LHX) recently set a 52-week low after beating the S&P 500 in 2022.
L3Harris faces some macroeconomic challenges, especially with high inflation and supply chain issues. The big aerospace and defense company's Q3 revenue was flat compared to the prior-year period. It also lowered full-year 2022 financial guidance.
Some investors are leery of L3Harris' plans to acquire Aerojet Rocketdyne for $4.7 billion. The valuation is higher than what Lockheed Martin offered to pay in late 2020. L3Harris will probably have to suspend share buybacks to fund the deal.
There hasn't been any talk of disruption to L3Harris' dividend, though. The company's dividend yield currently stands at nearly 2.3%. L3Harris has a great track record of dividend hikes, with its dividend payout nearly doubling over the last five years.
Are they buys?
I think that Baxter could be more appealing to investors after it completes the planned spinoff of the renal care and acute therapies business. For now, though, the stock doesn't provide a compelling reason to jump aboard.
L3Harris' pending acquisition of Aerojet Rocketdyne could be a smart move in retrospect, despite some skepticism. I view the stock as a potentially good pick for long-term investors. However, I'm not so sure L3Harris will be a winner over the near term.
That leaves CVS Health. My view is that the stock should again hold up relatively well if the U.S. economy enters a recession in 2023. Its dividend is dependable. I predict that CVS Health will deliver solid total returns over the long run. So of these three beaten-down stocks, CVS Health ranks as my favorite.
10 stocks we like better than CVS Health
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and CVS Health wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of January 9, 2023
Keith Speights has no position in any of the stocks mentioned. The Motley Fool recommends CVS Health and Lockheed Martin. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Dividend Stocks Trading Near Their 52-Week Lows

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street SPDR S&P 500 ETF Trust (Symbol: SPY) where we have detected an approximate $2 inflow -- that's a 0.2% increase week over week in outstanding units (from 1,,05,4,2,32,,116 to 1,,05,6,2,32,,116). Among the largest underlying components of SPY, in trading today The Charles Schwab Corporation (Symbol: SCHW) is off about 1.3%, Union Pacific Corp (Symbol: UNP) is up about 0.8%, and TJX Companies (Symbol: TJX) is up by about 0.5%. For a complete list of holdings, visit the SPY Holdings page »
The chart below shows the one year price performance of SPY, versus its 200 day moving average:
Looking at the chart above, SPY's low point in its 52 week range is $629.28 per share, with $779.37 as the 52 week high point — that compares with a last trade of $771.09. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further SPY Research:

SPY, SCHW, UNP, TJX: ETF Inflow Alert

Key Points
The company's second-quarter results weren't bad, overall.
Yet the stock was expensive on valuations, so many were hoping for a better performance.
TJX Companies (NYSE: TJX) had a rough time in late summer, at least as far as its stock was concerned. The company, best known for operating the TJ Maxx and Marshalls chains of discount department stores, released its latest quarterly earnings report, and investors found it dispiriting.
So too did several analysts, with two going so far as to downgrade their recommendations on the retailer. This combination of factors drove TJX's stock down by almost 15% last month.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Not good enough for Mr. Market
TJX reported its fiscal 2027 second-quarter figures on Aug. 19, revealing that total net sales were just under $15.2 billion, up 5% year over year. That was on the back of comparable sales growth of 4% across all of the company's divisions (which comprises the Marmaxx unit of TJMaxx and Marshalls, plus the HomeGoods brand and operations in Canada and overseas).
In terms of profitability, TJX also posted improvements. Net income under generally accepted accounting principles (GAAP) climbed by a robust 22% to $1.52 billion. On a non-GAAP (adjusted), per-share basis, that line item rose by 11% to $1.22.
Neither metric was far from its corresponding consensus analyst estimate. Revenue was basically in line with the average prognosticator projection, while the company's adjusted net profit was slightly above the collective expectation of $1.19.
Those trailing numbers didn't keep investors up at night, but stocks trade on future potential, not past results -- and that was the issue with this earnings report.
This, even though TJX actually raised its bottom-line guidance for the entirety of 2027 -- and for the second time in a row. Adjusted net income for the year is now expected to be $5.15 to $5.20 per share, up from the previous forecast of $5.08 to $5.15. It left its "comps" guidance intact at 3% to 4%. It added that it aims to increase its store count by 4% in fiscal 2028.
Yet the increased profitability range still sits under the average analyst estimate of $5.22 per share for the year. Investors can be rather unforgiving of companies that fall even an inch short of forward projections.
A pair of downgrades
So can analysts. Several professional TJX trackers lowered their price targets on the stock in the wake of the earnings release.
Two of them took the additional step of downgrading their TJX recommendations. Jefferies' Corey Tarlowe reduced his to hold from buy, while Gordon Haskett's Chuck Grom changed his from buy to accumulate (a midpoint between buy and hold). This had the expected negative effect of dampening sentiment on the retailer's stock.
TJX had done well in previous quarters, so this latest one looked weak in comparison. Unfortunately, the preceding frames have helped crank up its stock price, so now it appears a bit expensive on valuation grounds. I'm not down on the company, which isn't doing badly at all, but I'd be hesitant to buy the stock at its current level.
Should you buy stock in TJX Companies right now?
Before you buy stock in TJX Companies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TJX Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $446,157!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,377,357!*
Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 4, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and TJX Companies. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Why TJX Companies Stock Got Thrashed in August

With Five Below, Inc. FIVE set to announce its second-quarter fiscal 2026 earnings results on Sept. 2, after the market closes, investors face a critical question: Can FIVE continue its streak of surprising results, or will challenges temper growth?
The Zacks Consensus Estimate for second-quarter revenues is pegged at $1.22 billion, implying an 18.4% increase from the year-ago reported figure. Meanwhile, the consensus estimate for earnings has risen by a couple of cents over the past seven days to $1.34 per share. The estimate indicates year-over-year earnings growth of 65.4%.
Five Below has a trailing four-quarter earnings surprise of 70.1%, on average. In the last reported quarter, this Philadelphia, PA-based company surpassed the Zacks Consensus Estimate by 30.6%.
What the Zacks Model Indicates for Five Below’s Q2 Earnings
As investors prepare for Five Below’s second-quarter results, the question looms regarding an earnings beat or miss. Our proven model predicts that an earnings beat is likely for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.
Five Below has a Zacks Rank #2 and an Earnings ESP of +5.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Five Below, Inc. Price, Consensus and EPS Surprise
Factors Likely to Have Shaped Five Below’s Q2 Outcome
Five Below’s second-quarter performance is likely to have benefited from continued traction in its customer-centric merchandising strategy. The company has shifted from an item-led approach toward broader assortment storytelling, with an emphasis on frequent newness, trend-right products and compelling value. The broad-based merchandise momentum across categories, including toys and collectibles, beauty, fashion, food and candy, might have provided Five Below with multiple avenues to sustain customer engagement. The integration of Five Beyond merchandise into relevant product “worlds,” along with simplified pricing and stronger in-stock execution, also appears to have made stores easier to shop and helped reinforce the value proposition.
Building on that merchandising foundation, Five Below’s increasingly social-first marketing approach is likely to have supported customer engagement and store traffic during the quarter. The company has become more active in social listening, creator content and trend amplification, allowing it to identify emerging interests and quickly connect those trends with merchandise and in-store experiences. Five Below has also been emphasizing the quality of new locations and site selection, witnessing strong productivity. Distribution-center efficiencies, better in-stock levels and continued investments in the store experience are likely to have complemented the contribution from new locations.
However, a cautious consumer environment, persistent inflation and higher fuel costs may have weighed on second-quarter performance. Elevated transportation costs, along with increased marketing spending and higher store labor expenses, could also have pressured profitability.
Five Below Stock Price Performance
Five Below, which competes with value-oriented retailers such as Burlington Stores, Inc. BURL and The TJX Companies, Inc. TJX, has seen its share price jump 12% over the past three months against the industry’s decline of 0.6%. Shares of Burlington Stores and TJX Companies have declined 19.1% and 12.8%, respectively.
Image Source: Zacks Investment Research
Does Five Below Present a Strong Case for Value Investing?
Five Below’s valuation remains elevated relative to the industry. FIVE currently trades at a forward 12-month price-to-earnings (P/E) multiple of 25.57, a notable premium to the industry average of 15.25. However, the stock is trading below its 12-month median P/E multiple of 28.17.
FIVE commands a premium to some of its close peers. Burlington Stores trades at a forward 12-month P/E multiple of 19.66, while TJX Companies carries a multiple of 24.30.
Final Words on FIVE
Five Below appears well positioned heading into its second-quarter earnings release, supported by healthy merchandising momentum, stronger customer engagement, effective social-first marketing and solid new-store execution. The earnings setup also looks favorable, improving the chances of a positive surprise.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

What's Five Below's Probability of an Earnings Beat This Season?

The TJX Companies, Inc. TJX continues to see strong momentum at its HomeGoods division, which operates the HomeGoods and Homesense banners in the United States. The business offers a wide range of home merchandise across decorative, seasonal, kitchen, textile and giftware categories, combining replenishable products with its treasure-hunt shopping format.
HomeGoods delivered a solid second-quarter fiscal 2027 performance, with comparable sales rising 7%, up from 5% growth in the prior-year quarter. HomeGoods’ net sales increased 10% to $2,507 million from $2,286 million. The comp gain was primarily driven by a higher average basket, while customer transactions also increased. Performance was strong across both banners, all regions and income demographic bands.
Product demand was well spread across the assortment. Replenishable consumables helped support steady traffic, while decorative and higher-ticket categories, including lighting and wall merchandise, also performed well. Kitchen gadgets, linens, towels, sheets, giftware, gourmet food and seasonal decor were among the other areas highlighted.
The strength was also evident over the first six months of fiscal 2027. HomeGoods comparable sales increased 8%, compared with 5% a year earlier, while net sales rose 10% to $5,013 million from $4,540 million.
Overall, HomeGoods’ recent performance has been supported by strength across a broad range of merchandise, with both a higher average basket and increased customer transactions contributing to comparable-sales growth. With the recent gains extending across categories, banners and regions, HomeGoods’ sales momentum remains an important trend to watch as the year progresses.
TJX and Peers See Home Category Strength
Ross Stores ROST also saw notable strength in Home during the second quarter of fiscal 2026. Home was one of Ross Stores’ strongest businesses and outpaced its average. Decorative home and housewares were particularly strong, posting mid-teens growth across Ross and dd’s. With comparable-store sales up 10%, primarily driven by traffic, Ross Stores’ Home performance contributed to broad-based sales strength.
Burlington Stores, Inc. BURL saw improving performance in Home during the second quarter of fiscal 2026. The company’s Home business started to outperform the chain as it began lapping last year’s tariff-related assortment pressure. In July, Burlington Stores’ Home grew faster than the chain, with that trend continuing into August amid strength in home furnishings, kitchen essentials and toys. Burlington Stores noted that second-quarter comp growth was primarily driven by a higher basket.
TJX’s Price Performance, Valuation and Estimates
Shares of The TJX Companies have fallen 15% in the past month compared with the industry’s decline of 4.6%.
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 24.30X, down from the industry’s average of 29.40X.
The Zacks Consensus Estimate for The TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 1 cent to $5.21 and $5.73, respectively, in the past seven days.
TJX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TJX Companies' HomeGoods Comp Jumps 7%: Can Strong Momentum Persist?

Key Points
Peter Lynch's investment philosophy served him well when he ran the Magellan Fund.
Costco and TJX Companies are two prominent examples of investing in what you know.
Digging deeper, they produce solid sales and earnings growth.
Peter Lynch built an impressive track record as the fund manager for Fidelity's Magellan Fund. Under his stewardship, from 1977 to 1990, the fund beat the S&P 500 index in 11 out of the 13 years. And it produced an impressive 29% average annual return.
Fortunately, Lynch shares his wisdom in a book called One Up on Wall Street. He describes his philosophy, which is buy what you know, research the company's fundamentals, and plan to make a long-term commitment.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
With this in mind, here are two consumer goods companies that fit the bill.
1. Costco
Many people continue to shop at Costco Wholesale's (NASDAQ: COST) giant warehouses. If you've ever gone into one, you can usually see a crowd.
What makes Costco so special? After all, members pay an annual fee for the privilege. It offers a wide range of high-quality goods and services at low unit prices. It can do that by often offering items in bulk sizes.
Digging deeper into the numbers, membership retention and growth bear out Costco's continued appeal. Global renewal rates were about 90% in the fiscal third quarter (ended May 10), in line with historical retention rates. Meanwhile, paid members increased from 82.1 million to 82.9 million over the quarter.
Costco's same-store sales (comps) continue to grow, with a sharp 6.6% increase last quarter, after excluding foreign-currency translation effects and gasoline sales. This helped drive diluted earnings per share 15.2% higher versus a year ago, to $4.93.
The company also still has a growth opportunity. It has been expanding, opening more than 20 warehouses annually. During the first three quarters of this year, management expanded by 16 locations and announced it would open another 13 in the last three months of the year.
2. TJX Companies
TJX Companies' (NYSE: TJX) retail store banners include TJ Maxx, Marshalls, and HomeSense. It sells merchandise like apparel, accessories, and furniture at steep discounts (20% to 60%) compared to other retailers.
It can do this because it buys merchandise that manufacturers need to sell for various reasons. These include faltering demand, canceled orders from other retailers, and out-of-season items.
Management buys opportunistically, and shoppers "treasure hunt," or seek items at attractive prices. This appeals to people, but particularly during tough economic times, when consumers can buy more goods at attractive prices.
TJX Companies' brands have continued to post impressive comps. Fiscal second-quarter comps gained 4% and were higher across all of its divisions. Diluted earnings per share grew 23.6% year over year to $1.36. The period ended on Aug. 1.
Management continues to see room for expansion. It opened 129 new stores last year and 71 during the first half of this year. TJX had 5,285 stores as of Aug. 1.
Should you buy stock in Costco Wholesale right now?
Before you buy stock in Costco Wholesale, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Costco Wholesale wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $440,710!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Lawrence Rothman, CFA has positions in Costco Wholesale. The Motley Fool has positions in and recommends Costco Wholesale and TJX Companies. The Motley Fool has a disclosure policy.

Peter Lynch Made a Fortune by Investing in Familiar Brands. Here Are 2 Consumer Stocks I Think He'd Love Right Now.

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the State Street Consumer Discretionary Select Sector SPDR ETF (Symbol: XLY) where we have detected an approximate $275.3 million dollar outflow -- that's a 1.2% decrease week over week (from 198,156,504 to 195,806,504). Among the largest underlying components of XLY, in trading today TJX Companies (Symbol: TJX) is off about 1.4%, Starbucks Corp. (Symbol: SBUX) is down about 0.5%, and Lowe's Companies Inc (Symbol: LOW) is lower by about 1.9%. For a complete list of holdings, visit the XLY Holdings page » The chart below shows the one year price performance of XLY, versus its 200 day moving average:
Looking at the chart above, XLY's low point in its 52 week range is $105.19 per share, with $125.01 as the 52 week high point — that compares with a last trade of $116.34. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Further XLY Research:

XLY, TJX, SBUX, LOW: Large Outflows Detected at ETF

Skip to main content
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
© 2026, Nasdaq, Inc. All Rights Reserved.
My Quotes

TJX Companies, Inc. (The)

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type