#3 - TJX Companies (NYSE:TJX)
TJX Companies (NYSE:TJX) is the parent company for multiple retail chains including TJ Maxx. TJX may seem like an odd candidate for a virus-resistant stock. After all, the company shuttered both its physical and its online stores for two weeks in March. Plus the company took the always difficult step of suspending its quarterly dividend.
But that’s where much of the bad news ends. TJX is one of the largest “off-price” retailer as well as one of the few retailers to be adding retail space in recent years. Its off-price business model is particularly evident in its TJ Maxx brand. TJ Maxx attracts a loyal consumer base that visit the stores looking for discounted treasures.
Since the chain started to reopen its stores on May 2, sales are increasing on a year-over-year basis. This is significant because the TJ Maxx business model relies on fast turnover of discounted merchandise. In fact, as opposed to some retailers that only turnover inventory twice a year, TJ Maxx turns over their inventory 11 times per year.
And that means it needs consumers coming into stores. So if sales are increasing it is anecdotal evidence that consumers are perhaps less reluctant to shop in physical stores than previously thought.
About TJX Companies
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.
Read More - Current Price
- $98.92
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $104.29 (5.4% Upside)
