It’s not very often that Wall Street’s experts are practically unanimous on a stock. However, there’s a positive consensus outlook among analysts when it comes to TJX Companies (NYSE:TJX) stock. After delving into the data, it’s easy to see why the analyst community would favor TJX Companies.
TJX Companies is known for operating TJ Maxx, Marshalls and other department store chains. Some investors might be afraid to delve into retail apparel stocks because the economy is on shaky ground. Yet, there’s no need to worry about TJX Companies in 2023.
TJX Companies showed impressive resilience when inflation ran hot and recession fears surfaced. Plus, TJX Companies remained committed to respecting its investors by providing consistent dividends and repurchasing its own shares. At the end of the day, you’ll likely agree with the experts that TJX Companies is a standout among U.S. apparel names.
| TJX | TJX Companies | $77.90 |
Analysts Agree on TJX Stock
Now, here’s something you probably won’t see every day. Out of 11 analysts, every one of them rated TJX stock a “buy” (or the equivalent of a “buy”). Hence, the consensus rating on the stock is a “strong buy.”
The average analyst price target on TJX Companies shares is $90.73, which implies decent upside potential. Analysts with JPMorgan Chase and Telsey Advisory Group are more ambitious, as they separately issued $95 price targets on the stock.
There are several reasons that Wall Street’s experts might favor TJX stock. TJX Companies was consistently profitable in 2021 and 2022. Also, if they’re seeking a relatively good value, they may have noticed that TJX Companies’ GAAP trailing 12-month price-to-earnings (P/E) ratio of 26.28x is far below the company’s five-year average P/E ratio of 84.66x.
TJX Companies’ Impressive Resilience
Perhaps the best reason for analysts to like TJX Companies, however, is the company’s resilience. Elevated inflation has been problematic for some apparel retailers, no doubt. Yet, TJX Companies has actually thrived because the company offers popular clothing brands to shoppers at reasonable prices.
Without a doubt, being a discount retailer has helped TJX Companies to demonstrate strength during these challenging times. TJX Companies recently approved a 13% increase the company’s quarterly dividend. TJX Companies plans to implement $2 billion to $2.5 billion worth of share repurchases during fiscal 2024. This is a company that thinks about its shareholders.
TJX Companies’ fiscal figures were positive during fiscal 2023’s fourth quarter. The company reported diluted earnings per share of 89 cents, up 14% year over year (YOY) and at the high end of TJX Companies’ plan.
Not only that, but TJX Companies’ quarterly net sales increased 4.8% YOU to $14.52 billion, and beat Wall Street’s consensus estimate of $14.07 billion. Clearly, TJX Companies is able to draw crowds of shoppers even when the headlines suggest a recession may be imminent.
What You Can Do Now
There’s positive consensus among analysts regarding TJX Companies, but it’s important for each investor to conduct his or her own due diligence. The idea isn’t to own a stock just because the experts like it.
Still, it’s easy to see why the experts are optimistic about TJX Companies. The company showed sales and earnings growth during a rocky time for the economy. In addition, TJX Companies will continue to pay out dividends and plans to buy back its own shares. So, feel free to add TJX stock to your watch list and consider adding a few shares to your portfolio.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
