#7 - TJX Cos. (NYSE:TJX)
TJX Cos. (NYSE: TJX) - The question investors need to consider for TJX is if their stock is overpriced relative to their growth. The company has a business network that gives it the scale to sell their merchandise at prices 20-60% below traditional retailers and, in some cases, even being a lower option than Amazon and Wal-Mart. The company is also known for frequently rotating its merchandise, giving customers a continuous new selection of offerings. The stock price has reflected the strength of their business model, and reached an all-time high in August of 2018. Revenue rose to $9.3 billion (a 12% gain) and GAAP earnings increased to $1.17 per share. Both numbers beat expectations. And analysts are still forecasting that the stock has room to run with some projections of revenue growth reaching 12% for 2019. The one question may be a valuation that some may say is 26X this year’s earnings when you discount the tax reform boost. However, the valuation is in-line with competitors in this space, such as Ross Stores which trades at about 23x earnings. When you add in its dividend yield (currently about 1.6%), TJX looks to be a solid long-term growth stock for 2019.
About TJX Companies
The TJX Companies, Inc, together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States, Canada, Europe, and Australia. It operates through four segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. The company sells family apparel, including footwear and accessories; home fashions, such as home basics, furniture, rugs, lighting products, giftware, soft home products, decorative accessories, tabletop, and cookware, as well as expanded pet, and gourmet food departments; jewelry and accessories; and other merchandise.
More about TJX Companies- Current Price
- $113.27
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 15 Buy Ratings, 2 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $135.06 (19.2% Upside)
