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The TJX Companies, Inc. ((TJX - Free Report) ) 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 28.83, slightly below the industry average of 30.27.
TJX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
When compared to peers, Costco Wholesale Corporation ((COST - Free Report) ), Ross Stores, Inc. ((ROST - Free Report) ) and Burlington Stores, Inc. ((BURL - Free Report) ), TJX shows a balanced valuation profile. It trades more attractively than Costco at 48.27X, yet at a premium to Ross Stores and Burlington, which trade at 22.2X and 25.14X, respectively. This positions TJX as reasonably valued: cheaper than high-growth peers like Costco while carrying a modest premium to off-price rivals, a premium that reflects its consistent performance and strong growth momentum.
Over the past three months, The TJX Companies stock has surged 14.3%, outperforming the industry, the Zacks Retail and Wholesale sector, and even the broader S&P 500, which advanced 2%, 11% and 12.1%, respectively. This rally underscores strong investor confidence and momentum in TJX’s off-price retail model.
TJX Stock Past 3 Months Performance
Image Source: Zacks Investment Research
Closing the current trading session at $140.04, TJX stock is now 3.8% below its 52-week high of $145.58 touched on Aug. 20, 2025. The stock trades comfortably above its 50-day and 200-day simple moving averages of $131.87 and $125.52, respectively, reinforcing its bullish trend and highlighting strong investor sentiment.
So far, TJX’s valuation, recent stock performance and technical strength highlight its appeal. To fully understand what’s driving this momentum, it’s important to look deeper into the company’s fundamentals.
Strong Fundamentals Fuel TJX’s Growth Momentum
TJX stands out for its flexible off-price model, which allows it to quickly adjust to consumer trends and source fresh, branded products at compelling values. This treasure-hunt shopping experience keeps customers engaged, drives repeat visits, and gives TJX a durable advantage over both traditional retailers and online platforms. Its broad global presence across the United States, Canada, Europe and Australia further strengthens resilience by diversifying revenue streams and customer bases.
A key driver of TJX’s success is its ability to consistently grow customer traffic, which fueled a 4% comparable store sales increase in the second quarter of fiscal 2026. Gains were broad-based across divisions, with Marmaxx (U.S.), HomeGoods (U.S.), TJX Canada and TJX International (Europe & Australia) delivering standout results. This steady traffic growth highlights the strength of TJX’s value proposition and its ability to attract a wide demographic, including younger shoppers who are increasingly turning to off-price formats.
Expansion remains central to TJX’s strategy. The company ended the fiscal second quarter with 5,134 stores and continues to see a long runway for growth, with plans to add more than 1,800 additional locations in existing markets and Spain. For fiscal 2026, TJX plans to open approximately 130 net new stores, a 3% year-over-year increase.
On its second-quarter fiscal 2026 earnings call, management raised its fiscal 2026 guidance, expecting comparable store sales to grow 3%, compared with the prior guidance of 2% to 3%. Net sales are projected in the range of $59.3-$59.6 billion, up from the earlier forecast of $58.1-$58.6 billion. Earnings per share (EPS) are projected at $4.52 to $4.57, suggesting 6% to 7% growth over last year’s $4.26 and an increase from the prior guidance of $4.34 to $4.43. This upgraded forecast reflects management’s confidence in TJX’s ability to sustain growth and navigate a dynamic retail environment.
Estimate Revisions Favoring TJX Stock
Reflecting positive sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen upward revisions. Over the past 30 days, the consensus estimates for both the current and next fiscal year have increased by 10 cents to $4.58 and 11 cents to $5.04 per share, respectively. These upward revisions signal improving sentiment among analysts. Based on current projections, TJX is expected to deliver year-over-year EPS growth of 7.5% this year and 10% next year.
Image Source: Zacks Investment Research
Challenges on the Horizon for TJX
Currency and trade remain significant headwinds for TJX. Management expects unfavorable foreign exchange to reduce fiscal 2026 EPS growth by about 1%, reflecting the risks of operating across multiple international markets. Tariffs on U.S. imports are also an ongoing burden, adding structural cost pressures that could limit future profitability despite TJX’s strong buying and sourcing strategies.
The TJX Companies also faces margin sustainability and competitive pressures. Its full-year pretax profit margin outlook of 11.4% to 11.5% is flat to slightly below last year, underscoring limited room for expansion. The retail environment remains highly promotional, especially in apparel, limiting pricing power. With both off-price peers and traditional retailers competing for consumer dollars, TJX could face pressure on traffic and profitability.
What is the Right Investment Strategy for TJX?
TJX’s blend of reasonable valuation, resilient traffic growth and supportive technical strength makes it a compelling name within off-price retail. Expansion across global markets and consistent gains in comparable sales help offset pressures from tariffs, currency headwinds, and a promotional retail landscape. Recent upward revisions to fiscal 2026 guidance highlight management’s confidence in sustaining momentum. At present, the stock appears well-positioned for steady performance, making it more suited for holding rather 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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TJX Trading Cheaper Than Industry: What's the Next Best Move?
Key Takeaways
The TJX Companies, Inc. ((TJX - Free Report) ) 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 28.83, slightly below the industry average of 30.27.
TJX P/E Ratio (Forward 12 Months)
Image Source: Zacks Investment Research
When compared to peers, Costco Wholesale Corporation ((COST - Free Report) ), Ross Stores, Inc. ((ROST - Free Report) ) and Burlington Stores, Inc. ((BURL - Free Report) ), TJX shows a balanced valuation profile. It trades more attractively than Costco at 48.27X, yet at a premium to Ross Stores and Burlington, which trade at 22.2X and 25.14X, respectively. This positions TJX as reasonably valued: cheaper than high-growth peers like Costco while carrying a modest premium to off-price rivals, a premium that reflects its consistent performance and strong growth momentum.
Over the past three months, The TJX Companies stock has surged 14.3%, outperforming the industry, the Zacks Retail and Wholesale sector, and even the broader S&P 500, which advanced 2%, 11% and 12.1%, respectively. This rally underscores strong investor confidence and momentum in TJX’s off-price retail model.
TJX Stock Past 3 Months Performance
Image Source: Zacks Investment Research
Closing the current trading session at $140.04, TJX stock is now 3.8% below its 52-week high of $145.58 touched on Aug. 20, 2025. The stock trades comfortably above its 50-day and 200-day simple moving averages of $131.87 and $125.52, respectively, reinforcing its bullish trend and highlighting strong investor sentiment.
TJX Stock Trades Above 50-Day & 200-Day Moving Averages
Image Source: Zacks Investment Research
So far, TJX’s valuation, recent stock performance and technical strength highlight its appeal. To fully understand what’s driving this momentum, it’s important to look deeper into the company’s fundamentals.
Strong Fundamentals Fuel TJX’s Growth Momentum
TJX stands out for its flexible off-price model, which allows it to quickly adjust to consumer trends and source fresh, branded products at compelling values. This treasure-hunt shopping experience keeps customers engaged, drives repeat visits, and gives TJX a durable advantage over both traditional retailers and online platforms. Its broad global presence across the United States, Canada, Europe and Australia further strengthens resilience by diversifying revenue streams and customer bases.
A key driver of TJX’s success is its ability to consistently grow customer traffic, which fueled a 4% comparable store sales increase in the second quarter of fiscal 2026. Gains were broad-based across divisions, with Marmaxx (U.S.), HomeGoods (U.S.), TJX Canada and TJX International (Europe & Australia) delivering standout results. This steady traffic growth highlights the strength of TJX’s value proposition and its ability to attract a wide demographic, including younger shoppers who are increasingly turning to off-price formats.
Expansion remains central to TJX’s strategy. The company ended the fiscal second quarter with 5,134 stores and continues to see a long runway for growth, with plans to add more than 1,800 additional locations in existing markets and Spain. For fiscal 2026, TJX plans to open approximately 130 net new stores, a 3% year-over-year increase.
On its second-quarter fiscal 2026 earnings call, management raised its fiscal 2026 guidance, expecting comparable store sales to grow 3%, compared with the prior guidance of 2% to 3%. Net sales are projected in the range of $59.3-$59.6 billion, up from the earlier forecast of $58.1-$58.6 billion. Earnings per share (EPS) are projected at $4.52 to $4.57, suggesting 6% to 7% growth over last year’s $4.26 and an increase from the prior guidance of $4.34 to $4.43. This upgraded forecast reflects management’s confidence in TJX’s ability to sustain growth and navigate a dynamic retail environment.
Estimate Revisions Favoring TJX Stock
Reflecting positive sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen upward revisions. Over the past 30 days, the consensus estimates for both the current and next fiscal year have increased by 10 cents to $4.58 and 11 cents to $5.04 per share, respectively. These upward revisions signal improving sentiment among analysts. Based on current projections, TJX is expected to deliver year-over-year EPS growth of 7.5% this year and 10% next year.
Image Source: Zacks Investment Research
Challenges on the Horizon for TJX
Currency and trade remain significant headwinds for TJX. Management expects unfavorable foreign exchange to reduce fiscal 2026 EPS growth by about 1%, reflecting the risks of operating across multiple international markets. Tariffs on U.S. imports are also an ongoing burden, adding structural cost pressures that could limit future profitability despite TJX’s strong buying and sourcing strategies.
The TJX Companies also faces margin sustainability and competitive pressures. Its full-year pretax profit margin outlook of 11.4% to 11.5% is flat to slightly below last year, underscoring limited room for expansion. The retail environment remains highly promotional, especially in apparel, limiting pricing power. With both off-price peers and traditional retailers competing for consumer dollars, TJX could face pressure on traffic and profitability.
What is the Right Investment Strategy for TJX?
TJX’s blend of reasonable valuation, resilient traffic growth and supportive technical strength makes it a compelling name within off-price retail. Expansion across global markets and consistent gains in comparable sales help offset pressures from tariffs, currency headwinds, and a promotional retail landscape. Recent upward revisions to fiscal 2026 guidance highlight management’s confidence in sustaining momentum. At present, the stock appears well-positioned for steady performance, making it more suited for holding rather 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.