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On Thursday, BofA Securities maintained a positive outlook on The TJX Companies (NYSE:TJX) with a reiterated Buy rating and a steady price target of $145.00. The stock, currently trading near its 52-week high of $135.85, has delivered an impressive 31.25% return over the past year. According to InvestingPro analysis, TJX appears slightly overvalued at current levels, with the stock commanding a P/E ratio of 30.2x. The endorsement comes after TJX exhibited robust first-quarter performance, showcasing a 3% increase in comparable store sales, aligning with the upper end of its 2-3% projected range.
The strength in TJX’s quarterly results was attributed to heightened transaction volumes across various regions and store banners. According to BofA Securities analysts, the retailer is capitalizing on consumers’ increasing preference for value amid economic pressures, enhancing its market share by offering desirable branded products to a broad customer base. InvestingPro data reveals the company’s robust financial health with a "GOOD" overall score, supported by revenue growth of 3.95% in the last twelve months and a strong gross profit margin of 30.6%.
Management at TJX has signaled an encouraging start to the second quarter and has reaffirmed its full-year margin outlook of 11.3-11.4%. This projection suggests that the company has largely accounted for tariff-related costs within its second-quarter financials. In light of these developments, BofA Securities has adjusted its earnings per share (EPS) estimates for fiscal years 2026 and 2027 upwards by 1%, following the first-quarter earnings beat.
The $145 price objective set by BofA Securities is based on a 30-times multiple of the firm’s estimated earnings per share for fiscal year 2027. This target reflects a steady vote of confidence in TJX’s ability to navigate the retail landscape and sustain its growth trajectory. With five analysts recently revising their earnings estimates upward, TJX continues to demonstrate strong momentum. For deeper insights into TJX’s valuation and growth prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 top US stocks.
In other recent news, The TJX Companies reported its first-quarter earnings for 2025, revealing an earnings per share (EPS) of $0.92, slightly above the forecasted $0.91. The company’s revenue reached $13.1 billion, surpassing expectations of $13 billion. Despite these positive results, TJX’s stock experienced a decline in pre-market trading, attributed to concerns over margin compression and increased inventory levels, which rose by 15%. Analysts from Loop Capital and UBS have maintained a Buy rating on TJX, with Loop Capital raising its price target to $150 and UBS setting a new target of $164. UBS highlighted TJX’s potential market share expansion, particularly through its ventures like HomeSense and Sierra Trading Post. Meanwhile, JPMorgan has reaffirmed an Overweight rating on TJX, with a price target of $130, noting the company’s EPS of $0.92 exceeded both consensus estimates and management’s guidance. TJX’s management has reiterated its fiscal year 2026 EPS guidance, projecting a range of $4.34 to $4.43, which is slightly below the consensus estimate of $4.50. These developments reflect TJX’s strategic positioning and ongoing efforts to navigate tariffs and macroeconomic challenges.
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