We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TJX Companies (TJX) Up 32.9% in the Past Year: What's Driving it?
Read MoreHide Full Article
The TJX Companies, Inc.’s (TJX - Free Report) performance has been impressive over the past year, evident from the 32.9% increase in its share price. The company’s strength across its businesses, solid store and e-commerce growth efforts, effective marketing strategy and shareholder-friendly policies seem to have boosted sentiments for the stock.
TJX has a $102.8 billion market capitalization and currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Over the past year, the company’s shares have outperformed the industry’s growth of 5.3%. The S&P 500 has risen by 15.5%, while the sector increased by 7.7% during the same period.
Catalysts Behind the Share Price Increase
The TJX Companies has been benefiting from strength in its Marmaxx operating segment. In the second quarter of fiscal 2024, Marmaxx’s net sales grew 9% year-over-year to $7,903 million. Its U.S. comparable store sales increased by 8% in Marmaxx, driven by solid apparel and accessories categories’ sales. An increase in customer traffic was the key driver behind the growth in comparable store sales.
The recovery in the company’s HomeGoods (U.S.) division due to growth in customer traffic also acts as a tailwind. In the HomeGoods (U.S.) division, its fiscal second-quarter net sales amounted to $2,011 million, reflecting an increase of 8.3% year over year. In the quarter, its U.S. comparable store sales rose 4% in the HomeGoods category.
Based on solid business momentum, TJX provided a strong outlook for fiscal 2024. For the fiscal year, comparable store sales are expected to grow by 3-4%, excluding sales from the 53rd week. The consolidated sales are envisioned in the band of $53.5-$53.8 billion, suggesting 7-8% year-over-year growth. For the fiscal third quarter, comparable store sales are likely to rise by 3-4%, while consolidated sales are expected to increase by 6-7% to $12.9-$13.1 billion.
The company has been rapidly expanding its footprint in the United States, Europe, Canada and Australia. It plans to add nearly 125 net new stores in fiscal 2024, taking its year-end total to roughly 5,000. TJX has been witnessing solid demand for an in-person shopping experience in the last few years.
TJX remains committed to rewarding shareholders through dividend payouts and share repurchases. For instance, in the fiscal second quarter, it paid out dividends of $382 million to its shareholders and repurchased shares worth $550 million. For fiscal 2024, the company plans to repurchase shares worth $2-$2.5 billion. Also, in the first quarter of fiscal 2024, management raised its quarterly dividend by 13% to 33.25 cents per share.
Other Key Picks
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
The Zacks Consensus Estimate for ANF’s 2024 sales and earnings per share (EPS) implies increases of 10% and 1,644%, respectively, from a year ago. It has a trailing four-quarter earnings surprise of 724.8%, on average.
Arcos Dorados Holdings Inc. (ARCO - Free Report) currently has a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 35%, on average.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 19.2% and 13%, respectively, from the prior-year levels.
Ross Stores Inc. (ROST - Free Report) currently has a Zacks Rank #2. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago reported figures.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TJX Companies (TJX) Up 32.9% in the Past Year: What's Driving it?
The TJX Companies, Inc.’s (TJX - Free Report) performance has been impressive over the past year, evident from the 32.9% increase in its share price. The company’s strength across its businesses, solid store and e-commerce growth efforts, effective marketing strategy and shareholder-friendly policies seem to have boosted sentiments for the stock.
The Framingham, MA-based company belongs to the Zacks Retail - Discount Stores industry, which comes under the ambit of the Zacks Retail-Wholesale sector.
TJX has a $102.8 billion market capitalization and currently carries a Zacks Rank #2 (Buy).
Image Source: Zacks Investment Research
Over the past year, the company’s shares have outperformed the industry’s growth of 5.3%. The S&P 500 has risen by 15.5%, while the sector increased by 7.7% during the same period.
Catalysts Behind the Share Price Increase
The TJX Companies has been benefiting from strength in its Marmaxx operating segment. In the second quarter of fiscal 2024, Marmaxx’s net sales grew 9% year-over-year to $7,903 million. Its U.S. comparable store sales increased by 8% in Marmaxx, driven by solid apparel and accessories categories’ sales. An increase in customer traffic was the key driver behind the growth in comparable store sales.
The recovery in the company’s HomeGoods (U.S.) division due to growth in customer traffic also acts as a tailwind. In the HomeGoods (U.S.) division, its fiscal second-quarter net sales amounted to $2,011 million, reflecting an increase of 8.3% year over year. In the quarter, its U.S. comparable store sales rose 4% in the HomeGoods category.
Based on solid business momentum, TJX provided a strong outlook for fiscal 2024. For the fiscal year, comparable store sales are expected to grow by 3-4%, excluding sales from the 53rd week. The consolidated sales are envisioned in the band of $53.5-$53.8 billion, suggesting 7-8% year-over-year growth. For the fiscal third quarter, comparable store sales are likely to rise by 3-4%, while consolidated sales are expected to increase by 6-7% to $12.9-$13.1 billion.
The company has been rapidly expanding its footprint in the United States, Europe, Canada and Australia. It plans to add nearly 125 net new stores in fiscal 2024, taking its year-end total to roughly 5,000. TJX has been witnessing solid demand for an in-person shopping experience in the last few years.
TJX remains committed to rewarding shareholders through dividend payouts and share repurchases. For instance, in the fiscal second quarter, it paid out dividends of $382 million to its shareholders and repurchased shares worth $550 million. For fiscal 2024, the company plans to repurchase shares worth $2-$2.5 billion. Also, in the first quarter of fiscal 2024, management raised its quarterly dividend by 13% to 33.25 cents per share.
Other Key Picks
Some other top-ranked stocks from the Zacks Retail-Wholesale sector are:
Abercrombie & Fitch Co. (ANF - Free Report) flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s 2024 sales and earnings per share (EPS) implies increases of 10% and 1,644%, respectively, from a year ago. It has a trailing four-quarter earnings surprise of 724.8%, on average.
Arcos Dorados Holdings Inc. (ARCO - Free Report) currently has a Zacks Rank #2. It has a trailing four-quarter earnings surprise of 35%, on average.
The Zacks Consensus Estimate for Arcos Dorados’ 2023 sales and EPS suggests rises of 19.2% and 13%, respectively, from the prior-year levels.
Ross Stores Inc. (ROST - Free Report) currently has a Zacks Rank #2. ROST has a trailing four-quarter earnings surprise of 11.4%, on average.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago reported figures.