Wall Street Zen Upgrades TJX Companies (NYSE:TJX) to Buy

Key Points

• Wall Street Zen upgraded TJX Companies from hold to buy, adding to a broadly bullish analyst backdrop. Overall, TJX now has a consensus Buy rating with a price target around $176.89.
• TJX recently reported strong quarterly results, posting $1.19 EPS versus the $1.02 estimate and revenue of $14.32 billion, which beat expectations and rose 9.2% year over year.
• Despite the positive outlook, the stock faces some valuation caution: shares were trading around $154.51, and recent insider sales plus commentary on premium pricing suggest investors are weighing upside against an already elevated valuation.

TJX Companies (NYSE:TJX - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Other equities research analysts have also recently issued research reports about the stock. JPMorgan Chase & Co. raised their target price on shares of TJX Companies from $173.00 to $174.00 and gave the stock an "overweight" rating in a report on Monday, May 18th. Wells Fargo & Company reaffirmed an "outperform" rating and issued a $160.00 price objective (up from $155.00) on shares of TJX Companies in a report on Thursday, May 21st. BTIG Research increased their target price on TJX Companies from $185.00 to $190.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Sanford C. Bernstein reissued an "outperform" rating on shares of TJX Companies in a research report on Thursday, May 21st. Finally, Truist Financial set a $190.00 price target on TJX Companies and gave the company a "buy" rating in a research note on Thursday, May 21st. Two investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat.com, TJX Companies currently has a consensus rating of "Buy" and a consensus price target of $176.89.

TJX Companies Stock Down 0.2%

Shares of TJX Companies stock opened at $154.51 on Friday. TJX Companies has a 1 year low of $122.00 and a 1 year high of $170.00. The firm has a market cap of $170.69 billion, a price-to-earnings ratio of 30.00, a PEG ratio of 3.35 and a beta of 0.63. The company has a 50-day moving average of $156.54 and a 200 day moving average of $156.53. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.14 and a quick ratio of 0.54.

TJX Companies (NYSE:TJX - Get Free Report) last posted its quarterly earnings data on Wednesday, May 20th. The apparel and home fashions retailer reported $1.19 EPS for the quarter, topping the consensus estimate of $1.02 by $0.17. TJX Companies had a net margin of 9.40% and a return on equity of 57.92%. The business had revenue of $14.32 billion for the quarter, compared to analyst estimates of $14.02 billion. During the same quarter in the previous year, the firm posted $0.92 earnings per share. TJX Companies's quarterly revenue was up 9.2% on a year-over-year basis. TJX Companies has set its FY 2027 guidance at 5.080-5.150 EPS and its Q2 2027 guidance at 1.150-1.170 EPS. As a group, sell-side analysts anticipate that TJX Companies will post 5.17 earnings per share for the current fiscal year.

Insider Buying and Selling

In other TJX Companies news, CEO Ernie Herrman sold 29,549 shares of the business's stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $157.46, for a total transaction of $4,652,785.54. Following the completion of the sale, the chief executive officer owned 552,850 shares of the company's stock, valued at approximately $87,051,761. The trade was a 5.07% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jackwyn Nemerov sold 957 shares of the firm's stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $168.59, for a total value of $161,340.63. Following the completion of the transaction, the director directly owned 802 shares in the company, valued at $135,209.18. This trade represents a 54.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 130,367 shares of company stock valued at $20,959,476 over the last three months. 0.15% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On TJX Companies

Hedge funds have recently modified their holdings of the company. Brighton Jones LLC lifted its position in shares of TJX Companies by 113.7% in the fourth quarter. Brighton Jones LLC now owns 15,039 shares of the apparel and home fashions retailer's stock valued at $1,817,000 after acquiring an additional 8,002 shares in the last quarter. Revolve Wealth Partners LLC grew its position in shares of TJX Companies by 12.1% during the fourth quarter. Revolve Wealth Partners LLC now owns 2,172 shares of the apparel and home fashions retailer's stock worth $262,000 after purchasing an additional 235 shares in the last quarter. Bison Wealth LLC raised its stake in TJX Companies by 32.9% during the 4th quarter. Bison Wealth LLC now owns 3,856 shares of the apparel and home fashions retailer's stock valued at $466,000 after purchasing an additional 955 shares during the period. United Bank raised its stake in TJX Companies by 7.6% during the 2nd quarter. United Bank now owns 16,298 shares of the apparel and home fashions retailer's stock valued at $2,013,000 after purchasing an additional 1,155 shares during the period. Finally, Schnieders Capital Management LLC. purchased a new position in TJX Companies in the 2nd quarter worth approximately $244,000. 91.09% of the stock is currently owned by institutional investors.

Key Stories Impacting TJX Companies

Here are the key news stories impacting TJX Companies this week:

• Positive Sentiment: TJX is being cited as one of the retail stocks positioned to benefit from stronger June retail sales and surging online spending, reinforcing the view that off-price retail demand remains resilient. 5 Solid Stocks to Boost Your Portfolio as Retail Sales Continue to Surge
• Positive Sentiment: A recent market note says TJX has risen on earnings optimism, with investors focusing on whether the company can deliver another strong quarter and justify its premium valuation. Can TJX Companies (TJX) Justify Its Valuation After Rising On Earnings Optimism?
• Positive Sentiment: TJX was also highlighted in “great rotation” commentary as a stock that could benefit if investors continue moving away from megacap tech and into consumer and value-oriented names. The Great Rotation: 5 Stocks Set to Win as Money Leaves Megacap Tech
• Neutral Sentiment: Recent commentary also notes that TJX has been mixed over the past month, despite strong longer-term returns, suggesting investors are weighing growth durability against the stock’s already rich run. Can TJX Companies (TJX) Justify Its Valuation After Rising On Earnings Optimism?
• Negative Sentiment: Valuation remains a concern, with analysts questioning how much upside is left after the stock’s strong performance, which could limit near-term gains. Can TJX Companies (TJX) Justify Its Valuation After Rising On Earnings Optimism?
• Negative Sentiment: Erste Group Bank reportedly downgraded TJX to Hold, adding a note of caution around the stock’s near-term risk/reward. TJX Companies NYSE: TJX Downgraded by Erste Group Bank to "Hold"

About TJX Companies

TJX Companies, Inc is a leading off-price retailer of apparel, footwear, home fashions and other consumer goods. The company operates multiple retail concepts that offer discounted brand-name and designer merchandise, including well-known banners such as T.J. Maxx and Marshalls in the United States, HomeGoods for home furnishings, TK Maxx in parts of Europe, and Winners and Homesense in Canada. Merchandise categories span women's, men's and children's apparel, accessories, beauty, home décor, kitchenware and small furniture, with frequent changes in assortment that create a “treasure-hunt” shopping experience for consumers.

The company's business model centers on opportunistic buying, purchasing excess, irregular or out-of-season inventory from manufacturers, department stores and other suppliers, and passing savings to customers through lower prices.

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