S&P 500 jumps as AMD rally leads tech higher
Investing.com - Wells Fargo (NYSE:WFC) raised its price target on The TJX Companies (NYSE:TJX) to $130.00 from $120.00 on Thursday, while maintaining an Equal Weight rating on the stock. The retail giant, with annual revenues of $57 billion and a market capitalization of $155 billion, continues to demonstrate its market leadership. According to InvestingPro data, TJX has maintained consistent dividend payments for 46 consecutive years, showcasing its financial stability.
The research firm cited TJX’s "strong print with little to no holes" in its latest earnings report, noting the company continues to perform well despite an uncertain macroeconomic environment. Wells Fargo highlighted comp sales growth of 4% versus Street expectations of 3.4%. The company’s robust performance is reflected in its impressive 30.5% gross profit margin and strong return on equity of 60%.
TJX also demonstrated flat merchandise margins despite tariff pressures and reported a strong start to the third quarter. The company delivered both top-line growth and gross margin upside, with lower-than-expected tariff costs contributing to the positive performance.
Wells Fargo described TJX’s second-half guidance as "conservative" and "prudent" given ongoing tariff and macroeconomic uncertainties. The firm based its new $130 price target on 27 times FY26 estimated earnings per share.
Despite the positive performance, Wells Fargo maintained its Equal Weight rating, noting valuation concerns as TJX trades near all-time valuation highs of approximately 30 times price-to-earnings, leaving "little room for error." InvestingPro analysis indicates the stock is currently trading above its Fair Value, with multiple indicators suggesting an overbought condition. For deeper insights into TJX’s valuation and 15+ additional ProTips, consider accessing the comprehensive Pro Research Report available on InvestingPro.
In other recent news, The TJX Companies reported impressive financial results for the second quarter of 2025, surpassing Wall Street expectations. The company achieved an earnings per share of $1.10, exceeding the forecasted $1.01, and reported revenue of $14.4 billion, which was higher than the anticipated $14.14 billion. Barclays (LON:BARC) responded by raising its price target for TJX to $155, maintaining an Overweight rating after the retailer’s strong quarterly performance. Evercore ISI also increased its price target to $162, citing TJX’s reliable share gains and consistent earnings delivery. Jefferies raised its price target to $160, pointing to potential benefits from the company’s alignment with the growing Off-Price sector. Additionally, TD Cowen adjusted its price target to $151, highlighting the company’s above-consensus fiscal projections. These developments reflect a positive outlook among analysts for The TJX Companies, with several firms maintaining favorable ratings.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.