We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
If You Invested $1000 in TJX a Decade Ago, This is How Much It'd Be Worth Now
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in TJX (TJX - Free Report) ten years ago? It may not have been easy to hold on to TJX for all that time, but if you did, how much would your investment be worth today?
TJX's Business In-Depth
With that in mind, let's take a look at TJX's main business drivers.
Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies tries to attract consumers through rapid turn of inventories. As of Jul 29, 2023, the company operated a total of around 4,900 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites.
The company has been able to distinguish itself from traditional retailers on the grounds of opportunistic buying strategies and flexible business model. In fact, The TJX Companies’ low-cost structure sets it apart from other traditional retailers. In order to maintain control on costs, the company engages in the promotion of retail banners, rather than specific brands. The company’s distribution network is also designed in a manner such that helps curtailing costs. Moreover, the company emphasizes on creating strong relations with vendors across different countries, in order leverage buying power.
The TJX Companies operates through four business segments:
In the U.S., it operates through two segments, namely, Marmaxx (through stores under the names of T.J. Maxx and Marshalls) and HomeGoods.
Marmaxx divisions (61.2% of Q4 fiscal 24 Sales) sell family apparel (including footwear and accessories), home fashions (including home basics, accent furniture, lamps, rugs, wall décor, decorative accessories and giftware) and other merchandise.
HomeGoods (17.1% of Q4 fiscal 24 Sales) chain offers home basics, giftware, accent furniture, lamps, rugs, wall décor and decorative accessories from around the world, seasonal and other merchandise.
In Canada, it operates through TJX Canada (8.9% of Q4 fiscal 24 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (12.8% of Q4 fiscal 24 Sales) through stores under the names of T.K. Maxx and HomeSense.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TJX ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $3,342.92, or a gain of 234.29%, as of May 14, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 175.18% and the price of gold increased 71.89% over the same time frame in comparison.
Going forward, analysts are expecting more upside for TJX.
The TJX Companies' off-price business model, strategic store locations, impressive brands and supply-chain management are working well. The company has been benefiting from robust performance in its Marmaxx and HomeGoods segments, a trend that continued in fourth-quarter fiscal 2024. Comparable store sales saw a rise, indicating sustained momentum. The company anticipates a 2-3% rise in comparable store sales for fiscal 2025. With a solid pre-tax margin, TJX is poised for steady profitability, supported by improved merchandise margins and expense leverage. Also, management is on track with expansion efforts. However, the company is grappling with increased costs of sales. Rising selling, general and administrative (SG&A) expenses remain a concern for the company. Unfavorable foreign currency fluctuations might also act as a deterrent.
The stock is up 6.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
If You Invested $1000 in TJX a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in TJX (TJX - Free Report) ten years ago? It may not have been easy to hold on to TJX for all that time, but if you did, how much would your investment be worth today?
TJX's Business In-Depth
With that in mind, let's take a look at TJX's main business drivers.
Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies tries to attract consumers through rapid turn of inventories. As of Jul 29, 2023, the company operated a total of around 4,900 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites.
The company has been able to distinguish itself from traditional retailers on the grounds of opportunistic buying strategies and flexible business model. In fact, The TJX Companies’ low-cost structure sets it apart from other traditional retailers. In order to maintain control on costs, the company engages in the promotion of retail banners, rather than specific brands. The company’s distribution network is also designed in a manner such that helps curtailing costs. Moreover, the company emphasizes on creating strong relations with vendors across different countries, in order leverage buying power.
The TJX Companies operates through four business segments:
In the U.S., it operates through two segments, namely, Marmaxx (through stores under the names of T.J. Maxx and Marshalls) and HomeGoods.
Marmaxx divisions (61.2% of Q4 fiscal 24 Sales) sell family apparel (including footwear and accessories), home fashions (including home basics, accent furniture, lamps, rugs, wall décor, decorative accessories and giftware) and other merchandise.
HomeGoods (17.1% of Q4 fiscal 24 Sales) chain offers home basics, giftware, accent furniture, lamps, rugs, wall décor and decorative accessories from around the world, seasonal and other merchandise.
In Canada, it operates through TJX Canada (8.9% of Q4 fiscal 24 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (12.8% of Q4 fiscal 24 Sales) through stores under the names of T.K. Maxx and HomeSense.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TJX ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in May 2014 would be worth $3,342.92, or a gain of 234.29%, as of May 14, 2024, and this return excludes dividends but includes price increases.
The S&P 500 rose 175.18% and the price of gold increased 71.89% over the same time frame in comparison.
Going forward, analysts are expecting more upside for TJX.
The TJX Companies' off-price business model, strategic store locations, impressive brands and supply-chain management are working well. The company has been benefiting from robust performance in its Marmaxx and HomeGoods segments, a trend that continued in fourth-quarter fiscal 2024. Comparable store sales saw a rise, indicating sustained momentum. The company anticipates a 2-3% rise in comparable store sales for fiscal 2025. With a solid pre-tax margin, TJX is poised for steady profitability, supported by improved merchandise margins and expense leverage. Also, management is on track with expansion efforts. However, the company is grappling with increased costs of sales. Rising selling, general and administrative (SG&A) expenses remain a concern for the company. Unfavorable foreign currency fluctuations might also act as a deterrent.
The stock is up 6.21% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 1 higher, for fiscal 2024. The consensus estimate has moved up as well.