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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Why TJX (TJX) Stock Is Up Today

TJX Cover Image

What Happened?

Shares of off-price retail company TJX (NYSE: TJX) jumped 3.2% in the afternoon session after the company reported second-quarter results that surpassed Wall Street's expectations for both revenue and profit. The company's total revenue grew 6.9% year-over-year to $14.4 billion, beating analyst estimates. This performance was supported by a solid 4% increase in same-store sales, an industry metric that tracks sales at existing locations. Earnings per share came in at $1.10, which was 8.5% ahead of consensus forecasts. Despite the strong quarter, the company offered a mixed outlook. While its full-year earnings guidance was roughly in line with expectations, its revenue forecast for the upcoming third quarter came in below what analysts had anticipated. Investors, however, appeared to focus on the current quarter's strength, sending the stock higher.

After the initial pop the shares cooled down to $138.99, up 3.3% from previous close.

Is now the time to buy TJX? Access our full analysis report here, it’s free.

What Is The Market Telling Us

TJX’s shares are not very volatile and have only had 2 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 12 months ago when the stock gained 6.4% on the news that the company reported a "beat and raise" quarter. TJX beat analysts' revenue, gross margin, and EPS expectations. Notably, same-store sales grew 4% year on year, mostly driven by customer transactions. Despite recent worries about the strength of the consumer, management provided positive comments, adding, "The third quarter is off to a strong start. We see excellent buying opportunities in the marketplace and are strongly positioned to ship fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons." As a result, it raised its full-year earnings guidance. Overall, this was a solid quarter.

TJX is up 14.8% since the beginning of the year, and at $138.99 per share, has set a new 52-week high. Investors who bought $1,000 worth of TJX’s shares 5 years ago would now be looking at an investment worth $2,692.

Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.

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