Is TJX Stock Outperforming the Nasdaq?

Consumer Cyclical (names I - Z) - TJX Companies, Inc_ phone and website by- T_Schneider via Shutterstock

The TJX Companies, Inc. (TJX), with a market cap of $121 billion, is a leading off-price retailer of apparel and home fashions globally headquartered in Massachusetts. It owns popular discount retail stores like T.J. Maxx, Marshalls, and HomeGoods and appeals to a wide consumer base with varied product assortments at different price points and rapid inventory turnover.  

Companies worth $10 billion or more are generally classified as “large-cap stocks.” TJX's large market cap reflects its significant size, stability, and influence in the apparel retail industry. The company's powerful brand portfolio, vast global reach, streamlined supply chain, and dedicated customer following establish it as a dominant force in the sector. 

However, shares of discount titan are presently trading 1.4% below its 52-week high of $108.58, achieved on June 7. Moreover, TJX stock has surged 9.2% over the past three months, underperforming the Nasdaq Composite’s ($NASX) 8.3% gains over the same time frame.

In the longer term, TJX is up 14.2% on a YTD basis, underperforming NASX’s 17.3% gains over the same period. But the stock has gained 32.2% over the past 52 weeks, surpassing NASX's 30.8% returns over the same time frame.

Delving deep into its price momentum, TJX has been trading above its 50-day moving average since mid-December, despite some fluctuations, and has been consistently trading above the 200-day moving average.

TJX's strong performance over the past year can be attributed to U.S. consumers' continued bargain-hunting habits despite the easing of inflation and an increase in discretionary spending.

Moreover, TJX stock popped on April 22 following the release of its solid Q1 earnings results, which met analysts' expectations. Its revenue increased by 5.9% year on year to $12.5 billion, and the company's profit improved to $0.93 per share, beating projections by 6.9%

TJX has been outpacing its competitor, Macy's, Inc. (M). Shares of Macy’s have gained 19.6% over the past 52 weeks and declined 4.3% on a YTD basis.

Given TJX’s mixed price performance, analysts are still bullish about the stock’s potential. The stock has a consensus rating of “Strong Buy” from 24 analysts covering it, and the mean price target of $114.26 reflects a premium of 6.7% to current levels.

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On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.