How Is TJX Companies' Stock Performance Compared to Other Consumer Cyclical Stocks?

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How Is TJX Companies' Stock Performance Compared to Other Consumer Cyclical Stocks?

With a market cap of $171.1 billion,  The TJX Companies, Inc. (TJX) is a global off-price retailer of apparel, footwear, accessories, and home fashions, operating through its Marmaxx, HomeGoods, TJX Canada, and TJX International segments. Headquartered in Framingham, Massachusetts, TJX has established a strong international presence by providing quality branded products at value prices.

Companies worth more than $10 billion are generally labeled as “large-cap” stocks and TJX Companies fits this criterion perfectly. The company offers a wide range of merchandise, including clothing, beauty products, jewelry, furniture, home décor, pet products, and gourmet food through both retail stores and e-commerce platforms. 

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Shares of TJX Companies have declined 7.9% from its 52-week high of $165.82. TJX stock has fallen 5.5% over the past three months, underperforming the broader State Street Consumer Discretionary Select Sector SPDR ETF’s (XLY) 1.1% rise over the same time frame.  

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Longer term, shares of TJX have returned 20.4% over the past 52 weeks, outpacing XLY’s 10.6% gain over the same time frame. In addition, the stock is down marginally on a YTD basis, compared to XLY's 1% decline.

Despite recent fluctuations, the stock has been trading above its 200-day moving average since August last year. 

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Shares of TJX rose 5.7% on May 20 after the company delivered a strong fiscal Q1 2027 performance, with comparable sales increasing 6%, pretax profit margin expanding 170 basis points to 12%, and EPS jumping 29% year-over-year to $1.19, all well above management’s expectations. The company also raised its full-year FY2027 outlook, increasing projected sales to $63.2 billion - $63.7 billion and EPS guidance to $5.08 - $5.15.

Additionally, management highlighted outstanding availability of branded merchandise, a strong start to Q2, and boosted share repurchase guidance to $2.75 billion - $3 billion.

In comparison, rival Ross Stores, Inc. (ROST) has outpaced TJX stock. ROST stock has climbed nearly 60% over the past 52 weeks and 24.4% on a YTD basis. 

Despite the stock’s underperformance relative to its peers, analysts remain bullish on TJX Companies. The stock has a consensus rating of “Strong Buy” from 22 analysts in coverage, and the mean price target of $178.84 is a premium of 17.1% to current levels.


On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

 

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