Imagine, you go shopping, dig through a bunch of stuff and find Apple stock in perfect condition just for $5. That’s how TJX works. Okay, maybe you won’t find shares in their stores, but you won’t know if you don’t try. In any case, consumers and analysts love the concept of the company, so it’s a good time to take a look.
TJX engages in the retail of apparel and home fashion products. The special feature of the company is that TJX buys the remains of various brand collections and then sells them at a large discount. So, you can spot a quality and low-price gem (but probably you have to spend a certain time searching for it). The company operates in the US, Canada, Europe, and Australia. If you live there, you need to check the nearest shop with names like T.J. Maxx, Marshalls, HomeGoods, Homesense or Winners. Or you can try online shopping.
The results of the last year in the chart below prove that things are going well for TJX: the stocks have grown by 20%. And there are many events influencing the shares and markets. You can predict some of the next market movements using special trading tools. One of them is the economic calendar – which warns about the most significant economic events.
The last-5-years chart also demonstrates a stable upward trend.
The world is going through rough economic and geopolitical times when people have less money and feel less stable (and confident) – but TJX can still profit on it. People still need to buy things, however they hope to spend less. So, the choice is off-price shops, where consumers can find well-known brands at low prices. The longer the crisis lasts, the larger the audience attracted to this kind of store is. Sounds like a win-win business model.
Financial reports reaffirm these statements. Sales are rising as well as earnings per share. And the company has already declared a good start in 2023. In addition, the company has an attractive buyback program and quarterly dividends.
Many analysts believe that, despite the results achieved, TJX stock still has room for growth. The consensus forecast is +12% in the next 12 months. Plus, you can always find a rare item in one of TJX's shops.
Just remember that buying and selling any assets requires the same deep research as when you’re looking for a new favorite t-shirt in a shop. So, put in the work with the research, and you might have the opportunity to get a real treasure for your wardrobe (or portfolio).
This article was written in cooperation with TradingView