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On Wednesday, UBS analysts maintained a Buy rating on The TJX Companies (NYSE:TJX) with a steadfast price target of $158.00. According to InvestingPro data, the stock is currently trading above its Fair Value, with a market capitalization of $137.14 billion and a strong financial health score. The firm’s confidence in the off-price retailer is rooted in the expectation that TJX will significantly outperform its department store competitors in the coming years. UBS foresees TJX capturing a considerable share of the market, bolstered by the potential of its newer ventures like HomeSense and Sierra Trading Post, as well as its international operations.
The analysts project that TJX will achieve an approximate 11.5% five-year earnings per share (EPS) compound annual growth rate (CAGR). They believe that this growth trajectory warrants a price-to-earnings (P/E) ratio of around 27 times, though InvestingPro shows the current P/E ratio stands at 28.4x. The forecast is based on the premise that TJX’s consistent delivery of robust earnings reports will gradually persuade the market of its double-digit long-term EPS CAGR potential, supported by its impressive 3.95% revenue growth over the last twelve months.
The UBS team’s recent meeting with TJX management on March 4th has further solidified their positive outlook on the company’s prospects. During this meeting, the management’s commentary and strategic insights reinforced the analysts’ belief in TJX’s ability to sustain its growth and market share gains. InvestingPro highlights TJX’s remarkable 46-year streak of maintaining dividend payments, with a 12.78% dividend growth in the last year, demonstrating strong financial discipline.
TJX’s business model, which thrives on offering discounted branded merchandise, appears to be a key factor in its competitive edge over traditional department stores. UBS’s endorsement suggests that investors might expect the stock to approach the target price as the company continues to demonstrate its earnings prowess.
In summary, UBS’s analysis points to a promising future for The TJX Companies, with expectations of continued success in its financial performance and expansion of its market presence. The firm’s reiterated Buy rating and price target reflect their anticipation of TJX’s sustained upward trajectory in the retail sector.
In other recent news, The TJX Companies reported a strong performance in their fourth-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of $1.23 and revenue of $16.35 billion, both exceeding analyst forecasts. The company saw a 5% increase in revenue year-over-year, driven by strong sales in apparel and home categories. BMO Capital Markets responded positively, raising their price target for TJX Companies to $145, citing the company’s robust earnings and growth potential. Meanwhile, TD Cowen adjusted their price target for TJX to $137, maintaining a Buy rating, and noted the company’s ability to manage costs and increase gross margins.
Ross Stores (NASDAQ:ROST) also saw analyst activity, with TD Cowen cutting their price target to $175 while maintaining a Buy rating. Analysts highlighted Ross Stores’ guidance for a 2% to 3% growth in same-store sales for the fourth quarter of fiscal year 2024, aligning their estimates with the company’s projections. Despite the price target adjustment, the analysts expressed confidence in Ross Stores’ growth potential.
These recent developments indicate a period of strong earnings performance for TJX Companies, with analysts showing optimism about the company’s future prospects. Similarly, Ross Stores continues to attract positive sentiment from analysts, who recognize its potential despite a more conservative price target adjustment.
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