UBS maintains Buy rating on TJX stock ahead of expected earnings beat

Investing.com - UBS has reiterated its Buy rating and $164.00 price target on The TJX Companies (NYSE:TJX), currently trading near its 52-week high of $135.85, ahead of the retailer’s upcoming earnings report. InvestingPro data shows the stock has delivered a robust 20.39% return over the past year, though it appears overvalued at current levels.

The investment firm believes TJX has maintained "solid sales momentum through August MTD," positioning the company to deliver a modest second-quarter earnings beat and raise its fiscal year 2026 earnings guidance. With trailing twelve-month revenue of $56.99B and a strong financial health score from InvestingPro, the company continues to demonstrate operational strength.

UBS notes that both sell-side analysts and the broader market already anticipate similar outcomes, which may limit changes to earnings estimates and the company’s price-to-earnings ratio following the announcement.

The options market is pricing in a potential 3.7% stock move around the earnings event, slightly above the 3.5% historical average movement, an assessment UBS agrees with.

UBS Quant Team data shows TJX is "long-crowded" and maintains low short interest at 1.1%, with investors viewing the company as offering "the best combination of defensiveness and growth among Softlines stocks."

In other recent news, The TJX Companies reported several notable developments. TD Cowen has reiterated its Buy rating on TJX, maintaining a price target of $145, citing an improving buying environment and strong value perception driving sales. UBS also maintained its Buy rating, setting a higher price target of $164, highlighting potential market share gains from department stores and growth opportunities in segments like HomeSense and Sierra Trading Post. Additionally, TD Cowen raised its price target from $137 to $145, emphasizing TJX’s widening value gap against competitors and confidence in its fiscal outlook for 2026 and 2027. Bernstein SocGen Group reiterated its outperform rating with a $145 price target, praising TJX’s supply strategy and earnings potential amidst macroeconomic uncertainty.

Moreover, TJX Companies held its annual shareholder meeting, resulting in the election of its board of directors and the approval of its independent auditor for the upcoming fiscal year. The board nominees were elected with overwhelming support, ensuring continuity in leadership. These developments reflect ongoing confidence in TJX’s market position and strategic direction.

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