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 strong operating efficiency, but the market is already pricing in a very high level of quality. The company’s profitability is noticeably above the industry: ROE of 59.77%, ROA of 16.54%, ROI of 48.97%, and return on tangible equity of 60.34% — all of these metrics significantly exceed the median and have remained stably high over the years. Operating margin of 12.69% and net margin of 9.40% are also above the industry and show gradual improvement, which supports the business valuation. At the same time, gross margin of 32.00% is below the industry median, although it is slowly rising, so the profit structure is not ideal and part of the efficiency comes from cost control. The balance sheet is generally moderately sound: debt/equity of 0.18 is low, long-term debt has decreased compared with earlier periods, and cash on hand remains comfortable. But liquidity is not flawless: quick ratio of 0.54 and current ratio of 1.15 are below industry benchmarks, which calls for caution when assessing working capital. The most notable limiting factor is the expensive valuation: P/E of 24.8, P/S of 2.41, P/B of 13.68, and P/FCF of 25.31 are significantly above the industry median, meaning investors are already paying a premium for quality. The trend in valuation multiples has generally improved from earlier higher levels, but even after the decline they remain elevated, so the risk of overvaluation has not disappeared. Revenue, EBITDA, operating income, and net income in absolute terms are growing compared with earlier periods, confirming the resilience of the business and the company’s scale. However, the dividend yield is currently zero, and historically it has been only moderate, so the dividend factor does not provide meaningful support to the valuation. Overall, the fundamentals are strong, but not strong enough to justify aggressive upside from current levels: the business quality is high, and the price already reflects a significant part of these advantages. For an investor, this is more a story of a stable, profitable, and well-managed retailer than an obviously undervalued stock.

TJX Companies, Inc. (The)

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, незначительно вырос. Рынок на стороне быков.

Strong index, slightly up. The market is on the bulls' side.

Слабый индекс, незначительно вырос. Приток средств в лонги остается на невысоком уровне.

Weak index, slightly up. The inflow of funds into longs remains at a low level.

TJX’s strong profitability and steady business growth are offset by a rich valuation and moderate liquidity, so upside revaluation potential is limited.

Ross Stores, Inc. ROST is continuing to focus on store expansion and other strategic initiatives to support sales growth and strengthen its competitive position. The company’s off-price model, which offers branded merchandise at discounted prices, remains well-positioned to benefit from consumers’ ongoing focus on value.
Store expansion is an important growth driver for Ross Stores. Opening new locations allows the company to reach more customers, increase its geographic presence and capture demand in markets with additional room for growth. A larger store base can also support higher overall sales, provided new locations achieve productivity levels comparable to existing stores.
In addition to expansion, Ross Stores is working to improve store productivity and merchandise assortments. Enhancing the shopping experience, maintaining attractive branded offerings and improving operational execution can encourage customer traffic and spending. Investments in supply-chain capabilities and other infrastructure may also help the company move merchandise efficiently and respond to changing consumer preferences.
However, expansion comes with higher costs, including store occupancy, labor and capital expenditures. New stores may also take time to reach mature productivity levels. Moreover, intense competition in the off-price retail space and fluctuations in consumer spending could affect comparable-store sales.
Overall, store expansion, stronger merchandise execution and operational initiatives could provide additional avenues for Ross Stores to grow, although the benefits will depend on new-store productivity, consumer demand and the company’s ability to maintain its value-focused proposition.
ROST’s Price Performance, Valuation and Estimates
Ross Stores shares have gained 8.7% in the past six months against the industry’s 4.1% decline.
From a valuation standpoint, ROST trades at a forward price-to-earnings ratio of 27.13X compared with the industry’s average of 27.4X.
The Zacks Consensus Estimate for ROST’s fiscal 2026 and fiscal 2027 earnings per share (EPS) indicates year-over-year growth of 32.7% and 2%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has increased in the past 30 days.
Image Source: Zacks Investment Research
Ross Stores currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ross Stores’ Peers: Briefing Their Strategies
Dollar Tree, Inc. DLTR has been making smart moves to enrich shoppers’ experience and bolster growth. The company’s strategic initiatives, including its ongoing store conversions and expansions. DLTR’s progress on optimizing its store portfolio through store openings, renovations, re-banners and closings bodes well. Dollar Tree is benefiting from its expansion efforts, driven by steady store openings and continued investments in distribution centers, which have been supporting revenue growth.
The TJX Companies, Inc. TJX reinforces its position as a key value retailer by delivering a strong proposition that blends brand, fashion, quality and price across the global markets. TJX drives its expansion by increasing its store base in existing and new markets, leveraging its global scale and off-price model to offer fresh, branded merchandise at unmatched value. As part of its expansion strategy, TJX has been broadening its international footprint.
Burlington Stores, Inc. BURL is focused on store expansion, flexible merchandise sourcing, improved store productivity and a stronger customer value proposition to drive long-term growth. Burlington’s off-price model continues to resonate with value-conscious shoppers, supported by stronger baskets, higher average unit sales and broad-based category performance. BURL’s 2.0 strategy is centered on strengthening its buying and planning capabilities, chasing sales trends through opportunistic and in-season purchases, localizing assortments and operating with greater supply-chain and store-level flexibility.
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Will Store Expansion and Other Initiatives Boost Ross Stores' Growth?

In the latest trading session, TJX (TJX) closed at $130.08, marking a -1.18% move from the previous day. This move lagged the S&P 500's daily gain of 0.51%. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.48%.
The stock of parent of T.J. Maxx, Marshalls and other stores has fallen by 1.93% in the past month, leading the Retail-Wholesale sector's loss of 6.89% and undershooting the S&P 500's gain of 0.74%.
The investment community will be closely monitoring the performance of TJX in its forthcoming earnings report. On that day, TJX is projected to report earnings of $1.33 per share, which would represent year-over-year growth of 3.91%. Alongside, our most recent consensus estimate is anticipating revenue of $15.81 billion, indicating a 4.61% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.22 per share and revenue of $63.91 billion, which would represent changes of +10.36% and +5.86%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for TJX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.41% upward. At present, TJX boasts a Zacks Rank of #2 (Buy).
Investors should also note TJX's current valuation metrics, including its Forward P/E ratio of 25.22. For comparison, its industry has an average Forward P/E of 21.39, which means TJX is trading at a premium to the group.
Also, we should mention that TJX has a PEG ratio of 2.37. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 1.84 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 25, placing it within the top 11% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).

TJX (TJX) Stock Sinks As Market Gains: What You Should Know

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*Stock prices used were the afternoon prices of Sept. 22, 2026. The video was published on Sept. 24, 2026.
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Is TJX Stock an Undervalued Stock to Buy Right Now?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the iShares MSCI USA Quality Factor ETF (Symbol: QUAL) where we have detected an approximate $345.8 million dollar inflow -- that's a 0.7% increase week over week in outstanding units (from 213,250,000 to 214,800,000). Among the largest underlying components of QUAL, in trading today TJX Companies (Symbol: TJX) is up about 0.6%, Ross Stores Inc (Symbol: ROST) is up about 0.7%, and Automatic Data Processing Inc. (Symbol: ADP) is lower by about 2.2%. For a complete list of holdings, visit the QUAL Holdings page » The chart below shows the one year price performance of QUAL, versus its 200 day moving average:
Looking at the chart above, QUAL's low point in its 52 week range is $185.885 per share, with $227.32 as the 52 week high point — that compares with a last trade of $222.29. 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 QUAL Research:

Notable ETF Inflow Detected - QUAL, TJX, ROST, ADP

For Immediate Release
Chicago, IL – September 23, 2026 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Five Below, Inc. FIVE, Dollar Tree, Inc. DLTR, Kohl's Corp. KSS, Target Corp. TGT and The TJX Companies, Inc. TJX.
Here are highlights from Tuesday’s Analyst Blog:
5 Solid Retail Stocks to Grab as Sales Roar Despite High Inflation
Inflation climbed in August and remains a major concern, which led the Federal Reserve to finally hike interest rates for the first time in three years. However, despite continued inflationary pressures, the retail sector has performed well.
Consumers continued to spend aggressively, which saw retail sales grow at a solid pace in August. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc., Dollar Tree, Inc., Kohl's Corp., Target Corp. and The TJX Companies, Inc..
Retail Sales Grow
Retail sales grew 1.2% in August, recording the largest increase since March after declining a revised 0.5% in July, the Commerce Department reported last week. The decline in July was the first in nine months, indicating the robust growth for the sector this year.
The jump in August retail sales also surpassed analysts' expectations of a rise of 0.8%. Year over year, retail sales grew 0.6%. Although higher gasoline prices were partially responsible for the rise in retail sales, consumers also continued to spend aggressively on a range of goods.
Consumers have continued to spend at a solid pace despite high inflation as producer and consumer prices jumped in August. Households have been saving less and spending more. The rise in sales in August was to a large extent led by a 2.6% jump in receipts at non-store retailers.
Sales at vehicles and parts dealers climbed 0.6%. Also, back-to-school purchases boosted receipts at clothing stores by 0.7%. Sales at food services and drinking place, the only service category in the retail sales report, jumped a solid 1.2%. Retail sales excluding automobiles, gasoline, building materials and food services rose 1.4% in August, the largest increase since September 2024, after declining 0.4% in July.
The retail sales report comes just days after the Federal Reserve hiked interest rates by a quarter percentage point in its bid to combat sky-high inflation.
However, the rise in retail sales shows the economy's resilience. Surging oil prices have played a major role in pushing inflation higher, as tensions continue in the Middle East. However, inflation is likely to ease once oil prices stabilize. This is likely to boost the retail sector in the near term.
5 Retail Stocks with Upside
Five Below, Inc.
Five Below is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below's expected earnings growth rate for the current year is 57.6%. The Zacks Consensus Estimate for current-year earnings has improved 15.2% over the past 60 days. FIVE presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Dollar Tree
Dollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR's stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree's expected earnings growth rate for the current year is 34.6%. The Zacks Consensus Estimate for Dollar Tree's current-year earnings has improved 10.6% over the past 60 days. DLTR has a Zacks Rank #2 (Buy).
Kohl's Corp.
Kohl's offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. KSS targets value-oriented, moderate-income households and combines national brands with proprietary and exclusive brands.
Kohl's Corporation's expected earnings growth rate for the current year is 24.7%. The Zacks Consensus Estimate for Dollar Tree's current-year earnings has improved 48.5% over the past 60 days. KSS has a Zacks Rank #1.
Target Corp.
Target has evolved from being a pure brick-and-mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
Target Corporation's expected earnings growth rate for the current year is 37.8%. The Zacks Consensus Estimate for current-year earnings has improved 25.1% over the past 60 days. Target currently carries a Zacks Rank #2.
The TJX Companies
The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX's broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies' expected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. TJX presently has a Zacks Rank #2.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
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The Zacks Analyst Blog Highlights Five Below, Dollar Tree, Kohl's, Target and The TJX Companies

Dollar Tree, Inc. DLTR is showing clearer operating improvement after a second quarter in which sales, traffic and underlying earnings advanced. The retailer also raised its fiscal 2026 earnings outlook, while broader multi-price adoption and better store execution are supporting customer engagement.
The question is whether that progress is enough to offset tariff-related volatility and planned reinvestment that could restrain near-term margins. DLTR shares have fallen 17.9% in the past four weeks, bringing valuation and earnings revisions into sharper focus.
Second-quarter net sales rose 7% year over year to $4.89 billion, while comparable-store sales increased 3.7%. Average ticket climbed 3.3% and traffic improved 0.4%, a useful sign because recent growth is no longer coming only from higher ticket. Consumables posted a 5.8% comp and discretionary sales increased 1.6%.
Dollar Tree, Inc. Price, Consensus and EPS Surprise
Underlying earnings also improved. Adjusted earnings of $1.39 per share, excluding the $1.31 per-share net tariff-refund benefit, rose 80.5% from 77 cents and topped the Zacks Consensus Estimate of $1.13. Multi-price merchandise reached 17% of sales, up about 400 basis points year over year, and the company ended the quarter with about 6,600 multi-price stores.
Management raised fiscal 2026 adjusted earnings guidance to $7.70-$8.05 per share, including an estimated 60-cent benefit from tariff refunds. Net sales are still expected at $20.5-$20.7 billion with comparable-store sales growth of 3-4%. The Zacks Consensus Estimate for current-year earnings has risen 13.1% in the past four weeks.
Margin quality is the main counterweight. Gross margin expanded 850 basis points to 42.9% in the second quarter, but about 680 basis points came from the net impact of tariff refunds. The company received $383 million in refunds and plans to reinvest about $210 million in pricing, marketing, store operations and store conditions. Third-quarter adjusted earnings guidance of 80-95 cents includes an estimated 50-cent negative impact from those reinvestments.
Selling, general and administrative expenses also need monitoring. The second-quarter expense rate declined 40 basis points to 29.2%, but the first-half rate edged up to 28.5% from 28.4% a year earlier as marketing, general liability costs and depreciation increased. Inflation, elevated fuel costs and a heavier mix of lower-margin consumables could further limit margin expansion.
Dollar General Corporation DG, another value retailer, reported 3.5% same-store sales growth in its second quarter, with traffic up 2%. The TJX Companies, Inc. TJX, an off-price apparel and home fashions retailer, posted 4% comparable sales growth in its second quarter. These peers provide context for discount-oriented demand, though merchandise mix and margin structure differ.
DLTR trades at 14.1X forward 12-month earnings, below the Zacks sub-industry at 27.04X and the Zacks sector at 21.5X. At the same time, the earnings benefit from tariff refunds is partly temporary, while reinvestment and external cost pressures can limit margin upside.
For investors assessing whether the earnings recovery warrants a fresh position, the operating trend and estimate revisions are constructive, while tariff, fuel, mix and spending pressures keep the margin outlook less straightforward. The durability of the earnings improvement will depend on how margins perform as the refund benefit is partly offset by reinvestment and other costs.
DLTR currently carries a Zacks Rank #2 (Buy) and has a Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A. The Zacks Rank reflects favorable earnings-estimate trends over the shorter term, while the Style Scores add positive signals across valuation, growth and momentum. The combination supports interest in the shares, but it does not eliminate the execution and margin risks surrounding the earnings path.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Is DLTR a Buy as Earnings Improve but Margin and Tariff Risks Remain?

The TJX Companies, Inc. TJX is extending its customer reach through digital and social media. The company looks to keep its retail banners visible to shoppers and support repeat store visits. In the second quarter of fiscal 2027earnings call TJX said that for the fall and holiday seasons, it plans to use a mix of marketing channels, with a strong emphasis on digital and social media. Its campaigns are designed to reinforce the company’s value positioning through entertaining content that connects with shoppers across a broad range of age and income groups.
The scale of that digital activity is already substantial. In the first half of fiscal 2027, TJX recorded 1.1 billion video views across Facebook, Instagram, TikTok, Pinterest and YouTube. HomeGoods contributed more than 300 million additional views, bringing the referenced total to roughly 1.4 billion. TJX also reported that video completion rates on TikTok and YouTube were significantly above industry benchmarks, with viewers staying through most of the videos.
The digital push also supports TJX’s online assortment, with new brands added to U.S. e-commerce sites for TJ Maxx, Marshalls and Sierra to bring greater freshness to online shoppers. Beyond expanding its online presence, TJX’s integrated marketing efforts are designed to attract new customers and maintain engagement with existing shoppers. Its frequently changing merchandise mix and gifting initiatives are also intended to encourage more frequent store visits during the fall and holiday shopping seasons.
How TJX Compares With ROST and BURL
Ross Stores ROST is seeing marketing efforts support customer traffic and engagement. In the second quarter of fiscal 2026, Ross Stores’ comparable sales rose 10%, primarily driven by customer traffic, with gains from new and lapsed shoppers and more frequent trips by existing customers. The retailer also reported strong engagement with new creative messaging and a tweaked media mix. Ross Stores indicated its marketing efforts are reaching younger customers.
Burlington Stores, Inc. BURL is working to strengthen marketing as it seeks to raise brand awareness and reshape perceptions. According to its second quarter of fiscal 2026 press release, Burlington Stores has been testing ways to step up marketing over the past six to 12 months and expects to roll out programs in coming quarters. In the fiscal second quarter, Burlington Stores’ comparable sales rose 2%, driven mainly by higher basket size, while transactions were relatively flat.
TJX’s Price Performance, Valuation and Estimates
Shares of TJX Companies have fallen 6.9% in the past month compared with the industry’s decline of 8.5%.
From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 23.59X, down from the industry’s average of 26.78X.
The Zacks Consensus Estimate for TJX Companies’ fiscal 2027 and 2028 earnings per share has inched up 4 cents each to $5.22 and $5.74, respectively, in the past 30 days.
TJX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

TJX Companies' Digital Reach: Can Engagement Lift Store Traffic?

Inflation climbed in August and remains a major concern, which led the Federal Reserve to finally hike interest rates for the first time in three years. However, despite continued inflationary pressures, the retail sector has performed well.
Consumers continued to spend aggressively, which saw retail sales grow at a solid pace in August. Given this situation, it would be ideal to invest in retail stocks with a strong online presence. We have selected five stocks, namely, Five Below, Inc. FIVE, Dollar Tree, Inc. DLTR, Kohl's Corporation KSS, Target Corporation TGT and The TJX Companies, Inc. TJX.
Retail Sales Grow
Retail sales grew 1.2% in August, recording the largest increase since March after declining a revised 0.5% in July, the Commerce Department reported last week. The decline in July was the first in nine months, indicating the robust growth for the sector this year.
The jump in August retail sales also surpassed analysts’ expectations of a rise of 0.8%. Year over year, retail sales grew 0.6%. Although higher gasoline prices were partially responsible for the rise in retail sales, consumers also continued to spend aggressively on a range of goods.
Consumers have continued to spend at a solid pace despite high inflation as producer and consumer prices jumped in August. Households have been saving less and spending more. The rise in sales in August was to a large extent led by a 2.6% jump in receipts at non-store retailers.
Sales at vehicles and parts dealers climbed 0.6%. Also, back-to-school purchases boosted receipts at clothing stores by 0.7%. Sales at food services and drinking place, the only service category in the retail sales report, jumped a solid 1.2%. Retail sales excluding automobiles, gasoline, building materials and food services rose 1.4% in August, the largest increase since September 2024, after declining 0.4% in July.
The retail sales report comes just days after the Federal Reserve hiked interest rates by a quarter percentage point in its bid to combat sky-high inflation.
However, the rise in retail sales shows the economy’s resilience. Surging oil prices have played a major role in pushing inflation higher, as tensions continue in the Middle East. However, inflation is likely to ease once oil prices stabilize. This is likely to boost the retail sector in the near term.
5 Retail Stocks With Upside
Five Below, Inc
Five Below, Inc. is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise for $5 or below. FIVE mainly targets teenagers or pre-teen shoppers for its products, which include certain brands and licensed merchandise. Notably, these products belong to categories such as Style, Room, Sports, Tech, Create, Party, Candy and Now.
Five Below’s expected earnings growth rate for the current year is 57.6%. The Zacks Consensus Estimate for current-year earnings has improved 15.2% over the past 60 days. FIVE presently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dollar Tree
Dollar Tree, Inc. is an operator of discount variety stores offering merchandise and other assortments. DLTR’s stores successfully operate in major metropolitan areas, mid-sized cities and small towns. Dollar Tree offers a wide range of quality everyday general merchandise in many categories, including houseware, seasonal goods, candy and food, toys, health and beauty care, gifts, party goods, stationery, books, personal accessories, and other consumer items.
Dollar Tree’s expected earnings growth rate for the current year is 34.6%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 10.6% over the past 60 days. DLTR has a Zacks Rank #2 (Buy).
Kohl's Corporation
Kohl's Corporation offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. KSS targets value-oriented, moderate-income households and combines national brands with proprietary and exclusive brands.
Kohl's Corporation’s expected earnings growth rate for the current year is 24.7%. The Zacks Consensus Estimate for Dollar Tree’s current-year earnings has improved 48.5% over the past 60 days. KSS has a Zacks Rank #1.
Target Corporation
Target Corporation has evolved from being a pure brick-and-mortar retailer to an omni-channel entity. TGT has been investing in technologies, improving websites and mobile apps, and modernizing the supply chain to keep pace with the changing retail landscape and better compete with pure e-commerce players.
Target Corporation’s expected earnings growth rate for the current year is 37.8%. The Zacks Consensus Estimate for current-year earnings has improved 25.1% over the past 60 days. Target currently carries a Zacks Rank #2.
The TJX Companies
The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the United States and worldwide. TJX’s broad range of assortments at varying prices helps it reach out to a broad range of consumers. In addition, The TJX Companies tries to attract consumers through a rapid turn of inventories.
The TJX Companies’ expected earnings growth rate for the current year is 10.4%. The Zacks Consensus Estimate for current-year earnings has improved 1.2% over the past 60 days. TJX presently has a Zacks Rank #2.
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5 Solid Retail Stocks to Grab as Sales Roar Despite High Inflation

The TJX Companies, Inc. TJX is trading at a modest discount to the Zacks Retail - Discount Stores industry, offering investors a potential blend of growth and value. The stock’s forward 12-month price-to-earnings (P/E) ratio stands at 24.38, below the industry average of 28.14.
TJX P/E Ratio (Forward 12 Months)
TJX also presents a balanced valuation compared with peers Costco Wholesale Corporation COST, Ross Stores, Inc. ROST and Burlington Stores, Inc. BURL. TJX trades at a discount to Costco and Ross Stores, which carry forward P/E multiples of 39.59X and 25.61X, respectively, while commanding a premium to Burlington’s 17.8X. This valuation positions TJX between its higher-multiple peers and lower-valued off-price rival, reflecting a combination of consistent execution and a resilient business model.
Despite its relatively attractive valuation, TJX's shares have declined over the past month. During this period, The TJX Companies stock has fallen 9.5%, compared with declines of 6.8% for the industry, 4.5% for the Zacks Retail and Wholesale sector and 0.2% for the broader S&P 500. Among peers, TJX posted a steeper decline than Costco and Ross Stores, which fell 5.5% and 5.2%, respectively, but held up considerably better than Burlington, which dropped 27.4%.
TJX Stock Past Month Performance
TJX’s valuation and recent stock performance provide useful context for investors assessing the stock. A closer look at the company’s fundamentals offers further insight into its underlying prospects.
What’s Supporting TJX’s Business Momentum?
TJX’s diversified off-price model remains a key fundamental strength, supported by broad-based demand across its retail banners. In the second quarter of fiscal 2027, consolidated comparable sales rose 4%, driven by higher customer transactions and average basket size. HomeGoods, TJX Canada and TJX International delivered strong comparable sales growth of 7%, 6% and 7%, respectively, helping offset softer growth at Marmaxx.
Merchandising capabilities and product availability also remain central to TJX’s competitive positioning. Management noted that branded merchandise availability continues to be outstanding, supported by a global sourcing network spanning roughly 21,000 vendors and more than 1,400 buyers. This scale gives TJX flexibility to source differentiated assortments, refresh merchandise frequently and respond to changing consumer preferences across income and age groups.
TJX is also expanding its long-term growth runway through a larger store-development opportunity. The company raised the global store potential by 500 locations to 7,500 stores across its existing banners and countries and plans to accelerate annual store growth to 4% beginning in fiscal 2028. TJX ended the fiscal second quarter with 5,285 stores, indicating substantial room for further expansion.
How Are Estimates Stacking Up for TJX?
Reflecting the positive sentiment around TJX, the Zacks Consensus Estimate for earnings per share has seen upward revisions. Over the past 30 days, earnings per share estimates for fiscal 2027 and 2028 have increased 4 cents each to $5.22 and $5.74, respectively. Based on the revised estimates, TJX is expected to deliver earnings growth of 10.4% in fiscal 2027 and 9.9% in fiscal 2028.
The TJX Companies Navigates Key Challenges Ahead
Despite TJX’s solid operating fundamentals, rising costs remain a near-term concern. Adjusted SG&A expenses increased 20 basis points year over year to 19.7% of sales, largely due to higher store wage and payroll costs. Looking ahead, higher fuel and freight costs remain margin headwinds, with fiscal third-quarter adjusted gross margin projected to decline 40-50 basis points year over year.
Tariff and foreign-currency uncertainty also remains a key risk. While TJX has benefited from tariff refunds, the timing and extent of any additional recoveries remain uncertain. Meanwhile, currency movements reduced fiscal second-quarter reported sales growth 1 percentage point, highlighting the potential volatility associated with TJX’s international operations.
TJX’s Investment Analysis
TJX’s reasonable valuation, resilient off-price model and solid comparable-sales performance support its investment case. Strong merchandise availability, an extensive sourcing network and a sizable store-expansion runway add to its longer-term prospects, while upward earnings estimate revisions provide further support. However, rising labor, fuel and freight costs, along with tariff and currency uncertainties, could weigh on near-term performance. Given this balance of strengths and risks, the stock appears more suited to holding than aggressive buying. TJX currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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The TJX Companies Stock Trading at a Discount: Buy or Hold?

It has been about a month since the last earnings report for TJX (TJX). Shares have lost about 10.1% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is TJX due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for The TJX Companies, Inc. before we dive into how investors and analysts have reacted as of late.
TJX Q2 Earnings Beat Estimates on Sales Growth and Margin Gains
The TJX Companies delivered broad-based growth in the second quarter of fiscal 2027, supported by strong comparable sales outside Marmaxx and improved adjusted profitability.
Adjusted earnings of $1.22 per share rose 11% year over year and beat the Zacks Consensus Estimate of $1.18. Net sales increased 5% to $15,180 million, topping the consensus mark of $15,136 million. Consolidated comparable sales advanced 4%.
Management said the availability of branded, quality merchandise remained outstanding, giving TJX the flexibility to flow fresh assortments into stores and online. The retailer also has several initiatives in place to drive traffic and sales through the fall and holiday shopping periods.
The third quarter started strongly, with improvement at Marmaxx early in the period. This is notable because Marmaxx sales were below the company's expectations in the second quarter, while HomeGoods, TJX Canada and TJX International delivered stronger comparable sales results.
Marmaxx generated second-quarter net sales of $9,109 million, up 3% year over year. HomeGoods sales increased 10% to $2,507 million. TJX Canada posted sales of $1,470 million, up 6%, while TJX International sales rose 11% to $2,094 million. On a constant-currency basis, sales increased 8% in Canada and 10% internationally.
Comparable sales jumped 1% at Marmaxx, 7% at HomeGoods, 6% in TJX Canada and 7% at TJX International. Adjusted segment profit margins were 14.2% for Marmaxx, 12.4% for HomeGoods, 16.3% for TJX Canada and 7.3% for TJX International.
Adjusted pretax profit margin expanded 0.5 percentage points year over year to 11.9%. Adjusted gross profit margin increased 0.7 percentage points to 31.4%, driven by a rise in merchandise margin.
Adjusted selling, general and administrative costs represented 19.7% of sales, up 0.2 percentage points from a year earlier, primarily due to incremental store wage and payroll costs. Net interest income had a neutral year-over-year impact on pretax margin. The adjusted measures exclude the effects of IEEPA tariff refunds and related incremental compensation expense accruals. The adjustment removed a $219 million net pretax benefit from tariff refunds after the related compensation accruals.
The TJX Companies' Inventory and Cash Position Stay Solid
Total inventories were $7,862 million at quarter-end compared with $7,372 million a year earlier. Consolidated inventory per store increased 2% on a reported basis and 3% on a constant-currency basis, including distribution centers but excluding inventory in transit and e-commerce sites.
TJX generated $2,200 million of operating cash flow during the quarter and ended the period with $6,004 million in cash. Long-term debt was $1,871 million, and shareholders' equity totaled $10,651 million. The company spent $798 million on share repurchases and paid $529 million in dividends. It continues to expect fiscal 2027 repurchases of roughly $2,750 million to $3,000 million. Approximately $2,700 million remained available under the current repurchase program at quarter-end.
TJX's Adjusted Outlook Moves Higher
For the third quarter of fiscal 2027, management expects comparable sales growth of 2% to 3%. Adjusted pretax profit margin is projected between 12.3% and 12.4%, while adjusted earnings are forecasted at $1.30 to $1.32 per share.
For fiscal 2027, TJX continues to expect comparable sales growth of 3% to 4%. The company increased its adjusted pretax profit margin outlook to 12% to 12.1% and raised adjusted earnings guidance to $5.15 to $5.20 per share.
The TJX Companies' Store Expansion Plan Accelerates
TJX added 23 stores during the second quarter, ending the period with 5,285 locations. Total square footage increased 0.4% from the prior quarter to 137.9 million square feet, reflecting continued expansion across the company's existing retail banners.
Beginning in fiscal 2028, the retailer plans to accelerate store opening growth to 4%. TJX also increased its long-term global store target by 500 locations to 7,500 stores across its existing banners in current countries.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, TJX has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, TJX has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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TJX Companies, Inc. (The)

Price history and volume

360 Overview

Investment risk — low

Investment potential — medium

Bullish sentiment among traders

Active buy

Price drivers

UK Economy

Consumer Confidence

Consumer Spending

German Economy

Recession Risk

Supply Chain Disruptions

Inflation

US Presidental Election

stagflation

Interest Rates

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