Why TJX Companies Stock Climbed While the Market Sputtered Today
Written by Eric Volkman for The Motley Fool -> He believes the shares have potential upside of more than 19%. This comes several weeks after the company reported a blowout first quarter. Well before market open on Tuesday, a global bank reiterated its bullish view on retailer
He believes the shares have potential upside of more than 19%.
This comes several weeks after the company reported a blowout first quarter.
Well before market open on Tuesday, a global bank reiterated its bullish view on retailer TJX Companies (NYSE: TJX) . Clearly taken by this assessment, investors pushed into the T.J. Maxx and Marshalls owner's equity, boosting it more than 3% higher across that day's trading session.
The analyst behind the update was UBS prognosticator Jay Sole, who maintained his buy recommendation and $197 per share price target on TJX. That's more than 19% above the stock's latest closing price.
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According to reports, Sole cited findings in the latest version of his bank's annual U.S. Off-Price and Department Store Retailers Consumer Survey as a core reason for his continued bullishness. He wrote that the survey indicated that 71% of polled consumers believe the company's flagship T.J. Maxx stores offer good value for money. That figure is well higher than the roughly 47% for Macy's and other prominent department stores.
The analyst also pointed to data indicating that customers frequenting T.J. Maxx anticipate a 14% net increase in shopping frequency over the next year. That compared very favorably to the -1% average of the overall survey. In Sole's view, traffic is the main driver of a discount retailer's comparable sales growth, a crucial metric in the retail industry .
TJX has posted some impressive results lately. Its "comps" rose by 6% year over year in its first quarter of fiscal 2027 , and net sales advanced by a meaty 9% to more than $14 billion. Better, adjusted earnings per share soared by 29% to nearly $1.19, crushing the consensus analyst estimate. With these considerable tailwinds at its back, the company raised its comparable sales and EPS guidance for the full fiscal year.
