The TJX Companies Cut to Neutral at Redburn-Atlantic

TJX Companies (NYSE:TJX) delivered better-than-expected first-quarter results, but shares fell over 2% intra-day today as earnings guidance for the current quarter and full year came in below Wall Street estimates.

The off-price retail giant reported Q1 adjusted earnings per share of $0.92, just ahead of the $0.91 consensus. Revenue rose 5% year-over-year to $13.1 billion, beating expectations of $13 billion. Comparable store sales increased 3%, showing continued consumer demand strength.

Despite the solid performance, TJX’s Q2 EPS outlook of $0.97 to $1.00 fell short of analysts’ forecast of $1.04. For the full fiscal year 2026, the company reiterated its prior EPS guidance of $4.34 to $4.43—below the consensus of $4.49.

Looking ahead, TJX expects Q2 comparable sales growth of 2% to 3% and a pretax margin of 10.4% to 10.5%. It maintained its full-year outlook for consolidated comp sales growth in the 2% to 3% range.

The lower-than-expected profit outlook overshadowed otherwise healthy Q1 results, weighing on investor sentiment.

• John Kernan from TD Securities sets a price target of $142 for NYSE:TJX, indicating a potential increase of 5.24%.
• Despite a slight expected decrease in earnings per share, TJX anticipates a rise in quarterly revenue to $13.03 billion, up from $12.48 billion a year earlier.
• TJX's market capitalization stands at approximately $147.28 billion, with a recent trading volume of 2,785,489 shares on the NYSE.

The TJX Companies, Inc. (NYSE:TJX) is a leading off-price retailer of apparel and home fashions, operating stores under various names, including T.J. Maxx, Marshalls, and HomeGoods. Competing with other retail giants like Ross Stores and Burlington, TJX has been a significant player in the retail sector. On May 21, 2025, John Kernan from TD Securities set a price target of $142 for TJX, suggesting a potential increase of 5.24% from its then-current price of $134.93.

TJX is preparing to release its first-quarter earnings results. Analysts expect earnings of 91 cents per share, slightly down from 93 cents per share in the same period last year. Despite this, the company anticipates a rise in quarterly revenue to $13.03 billion, up from $12.48 billion a year earlier. This growth indicates a positive outlook for the company's financial health.

Previously, TJX reported flat fourth-quarter FY25 sales at $16.4 billion, surpassing the analyst consensus estimate of $16.20 billion. This performance demonstrates TJX's ability to meet and exceed market expectations, even in challenging conditions. The company's market capitalization is approximately $147.28 billion, reflecting its significant presence in the retail sector.

On Tuesday, TJX shares experienced a minor decline of 0.1%, closing at $134.93. The current stock price is $131.91, a decrease of 2.24% or $3.02. Today, the stock has traded between a low of $129.99 and a high of $133. Over the past year, TJX has reached a high of $135.85 and a low of $99.22, indicating some volatility in its stock performance.

Today's trading volume for TJX is 2,785,489 shares on the NYSE. This level of activity suggests continued investor interest in the company. As TJX prepares to release its earnings, investors will be keenly watching for any developments that could impact the stock's future performance.

• The consensus price target for NYSE:TJX has increased by 15.6% over the past year, indicating analyst confidence in the company's performance and strategic initiatives.
• TJX's expansion efforts, both domestically and internationally, are seen as a key driver of growth, aligning with the consumer trend towards off-price retail.
• Despite a positive outlook, Wells Fargo analyst Ike Boruchow has set a price target of $60 for TJX, as the company prepares to announce its first-quarter earnings with expected earnings of 91 cents per share and revenue of $13 billion.

The TJX Companies, Inc. (NYSE: TJX) is a leading off-price retailer, known for its wide range of apparel and home goods. With a strong presence in the U.S. and international markets, TJX operates popular store brands like T.J. Maxx, Marshalls, and HomeGoods. The company competes with other major retailers such as Ross Stores and Burlington.

Over the past year, analysts have shown increased optimism about TJX's stock, as evidenced by the rise in the consensus price target from $122.82 to $142. This 15.6% increase reflects confidence in the company's performance and strategic initiatives. TJX's strong earnings performance, highlighted by its ability to manage costs and maintain robust sales, likely contributes to this positive sentiment.

The company's expansion efforts, both domestically and internationally, further bolster its growth prospects. With a significant number of stores across various regions, TJX's market presence is robust. This expansion aligns with the growing consumer trend towards off-price retail, as shoppers seek value in uncertain economic times.

Despite the positive outlook, Wells Fargo analyst Ike Boruchow has set a price target of $60 for TJX, reflecting recent forecast changes. This target comes as TJX prepares to announce its first-quarter earnings, with analysts forecasting earnings of 91 cents per share and revenue of $13 billion. While earnings are expected to decline by 2% from the previous year, sales are anticipated to rise by 4%.

The broader market context also plays a role in shaping analyst expectations. The S&P 500 has shown resilience despite a recent U.S. debt downgrade by Moody's. As TJX prepares to release its earnings, investors are closely watching comparable store sales figures amid high interest rates and signs of cooling inflation.

TD Cowen raised its price target on The TJX Companies (NYSE:TJX) to $142 from $140 while reiterating a Buy rating, citing a favorable buying environment and growing confidence in earnings growth durability.

The firm believes the recent reduction in China tariff rates is a major tailwind for TJX, given its significant vendor exposure to the region. Combined with ongoing supply chain adjustments, the off-price retailer is well-positioned to capitalize on strong inventory availability heading into the second half of fiscal 2025.

Field checks indicate a supportive merchandising environment, particularly for TJX’s MarMaxx division, with potential upside to same-store sales in Q1.

TD Cowen sees shareholder returns increasingly driven by sustainable earnings per share growth rather than multiple expansion, and values the stock at 28x 2027 estimated EPS and 18x EV/EBITDA.

The TJX Companies, Inc. (NYSE:TJX) is a leading off-price retailer of apparel and home fashions, operating stores under various names, including T.J. Maxx, Marshalls, and HomeGoods. As a major player in the retail sector, TJX competes with giants like Target, Home Depot, and Lowe's. The company is set to release its quarterly earnings on May 21, 2025.

Despite a projected decline in EPS, TJX's revenue growth indicates strong sales momentum and customer growth, even amid rising wage and payroll expenses. This growth is significant, highlighting the company's resilience and strategic positioning in the competitive retail market.

Investors and analysts are closely monitoring retail earnings reports to gauge U.S. consumer spending habits. TJX, alongside Target, serves as a key indicator of consumer behavior, especially in the context of ongoing discussions about inflation and tariffs. Analysts are particularly interested in the company's pricing strategies in response to potential tariff impacts.

The market's positive sentiment, driven by easing tariff-related tensions and a finalized deal with the UK, may influence TJX's performance and investor reactions. With an average earnings surprise of 5.5% over the past four quarters, TJX's upcoming earnings report could impact short-term stock price movements.

Financially, TJX showcases strong market positioning with a price-to-earnings (P/E) ratio of approximately 31.59, a price-to-sales ratio of about 2.67, and an enterprise value to sales ratio of around 2.81. These metrics indicate investor confidence and the company's market value relative to its sales and revenue. Additionally, a debt-to-equity ratio of approximately 1.52 and a current ratio of about 1.18 highlight TJX's financial leverage and liquidity, respectively.

The TJX Companies, Inc. (NYSE:TJX) is a leading off-price retailer of apparel and home fashions, operating popular stores such as T.J. Maxx, Marshalls, and HomeGoods. Known for offering brand-name merchandise at discounted prices, TJX attracts a broad consumer base and competes with other retailers like Ross Stores and Burlington.

On February 26, 2025, TJX is set to release its quarterly earnings. Analysts predict an earnings per share (EPS) of $1.15 and revenue of $16.2 billion. This aligns closely with the Zacks Consensus Estimate, which anticipates an EPS of $1.16, marking a 3.6% increase from the previous year. However, revenue is expected to decrease by 1.3% year-over-year.

Analysts play a significant role in shaping investor perceptions. TJX holds an average brokerage recommendation (ABR) of 1.26, indicating a strong buy sentiment. Out of 23 firms, 20 rate TJX as a Strong Buy, reflecting a positive outlook. This consensus suggests that TJX is viewed favorably as an investment opportunity.

Despite the projected revenue decline, TJX's fiscal 2025 revenue is expected to grow by 3.7% to $56.2 billion. This growth is supported by the company's strong market presence and diverse product offerings. TJX's ability to capture consumer interest has been a key factor in its success.

Financially, TJX has a price-to-earnings (P/E) ratio of 28.12, indicating how the market values its earnings. The price-to-sales ratio is 2.42, and the enterprise value to sales ratio is 2.56, providing insights into its market valuation. With a debt-to-equity ratio of 1.56, TJX shows moderate financial leverage, while a current ratio of 1.19 indicates its capacity to meet short-term obligations.

The TJX Companies, Inc. (NYSE:TJX) is a leading off-price retailer of apparel and home fashions, operating popular stores such as T.J. Maxx, Marshalls, and HomeGoods. Known for offering brand-name merchandise at discounted prices, TJX attracts a broad consumer base and competes with other retailers like Ross Stores and Burlington.

On February 26, 2025, TJX is set to release its quarterly earnings. Analysts predict an earnings per share (EPS) of $1.15 and revenue of $16.2 billion. This aligns closely with the Zacks Consensus Estimate, which anticipates an EPS of $1.16, marking a 3.6% increase from the previous year. However, revenue is expected to decrease by 1.3% year-over-year.

Analysts play a significant role in shaping investor perceptions. TJX holds an average brokerage recommendation (ABR) of 1.26, indicating a strong buy sentiment. Out of 23 firms, 20 rate TJX as a Strong Buy, reflecting a positive outlook. This consensus suggests that TJX is viewed favorably as an investment opportunity.

Despite the projected revenue decline, TJX's fiscal 2025 revenue is expected to grow by 3.7% to $56.2 billion. This growth is supported by the company's strong market presence and diverse product offerings. TJX's ability to capture consumer interest has been a key factor in its success.

Financially, TJX has a price-to-earnings (P/E) ratio of 28.12, indicating how the market values its earnings. The price-to-sales ratio is 2.42, and the enterprise value to sales ratio is 2.56, providing insights into its market valuation. With a debt-to-equity ratio of 1.56, TJX shows moderate financial leverage, while a current ratio of 1.19 indicates its capacity to meet short-term obligations.