In Tuesday’s trading, the NYSE and Nasdaq had 56 and 99 new 52-week highs, respectively, against 42 and 256 new 52-week lows, respectively. 

Yesterday's jobs report spooked investors. The S&P 500 fell for the third consecutive day, producing almost twice as many new lows as new highs on the two stock exchanges. 

“‘Today’s data paints a picture of an economy catching its breath,’ said Gina Bolvin, president at Bolvin Wealth Management Group. ‘Job growth is holding on, but cracks are forming,’” CNBC reported.

Among the 56 new 52-week highs on the NYSE were Southwest Airlines (LUV) and TJX Companies (TJX). The former reached its 18th new 52-week high in the past 12 months; the latter, its 31st.

Year-to-date, the airline’s stock is up over 25%, while the discount retailer’s share price has gained in excess of 28%. Both outperform the S&P 500 substantially.

As we head into 2026, owners of both stocks likely are wondering how long the good times will last. I can’t answer that. 

What I can say is that TJX, at least in my books, is the better stock to fly higher in 2026 and beyond. Here’s why. 

Southwest’s Stock Is Flying

The five trading days between Dec. 10 and Dec. 16 saw LUV stock produce daily gains of 4.4%, 2.28%, 1.06%, 1.34% and 1.08%. In the four weeks ending Dec. 15, Southwest’s stock had weekly gains of 6.13%, 8.73%, 8.77% and 2.43%. 

In the past month, its share price has risen from flat year-to-date to more than 25% up. That’s not hot, it’s torrid. The question is whether it can maintain this blistering pace in 2026.

Concerns about Southwest include operational deficiencies, financial stability, and an overvalued stock price. Let’s consider each of these. 

When discussing operational efficiency in airlines, two metrics are commonly used: CASM (cost per available seat mile) and RASM (revenue per available seat mile). Two allow investors to compare apples to apples. 

In Q3 2025, CASM was 15.17 cents, up 0.4% from a year ago. Excluding fuel, it was 12.25 cents, 2.3% higher than Q3 2024. Meanwhile, its RASM in the third quarter was 15.25 cents, 0.4% higher than in the prior year.     

Its profit per available seat mile in the third quarter was eight cents, identical to its profit in Q3 2024. Compare that to Delta Air Lines (DAL), which is the best of the big U.S. airlines. In Q3 2025, its profit per available seat mile was 26 cents, more than three times Southwest’s. 

Airlines aren’t cheap businesses to run. They require oodles of capital even when you’re leasing rather than owning the planes. Balance sheets can occasionally get stretched.

As of Sept. 30, Southwest had total debt of $5.26 billion, $3.2 billion in cash, and net debt of $2.24 billion, according to S&P Global Market Intelligence. Delta’s net debt was $18.29 billion, 8.2 times higher than Southwest's. 

In terms of financial stability, its balance sheet is stronger than Delta’s, so shareholders can rest easy; it won’t go bankrupt anytime soon. 

Lastly, there is the question about valuation. 

Analysts expect Southwest to earn $0.97 in 2025. Its stock trades at 43.6 times this estimate. However, based on the $2.83 2026 estimate, it trades at a more palatable 14.9x multiple.  

The inflated valuation wouldn’t be as bad if its top-line revenue were growing, but it isn’t. The airline’s average revenue growth over the past three years is 6.8%. However, trailing 12-month revenue growth through Sept. 30 was 0.6%, considerably below the S&P 500's 13.2% average.

The company’s return on assets in the trailing 12 months was 0.7%, 400 basis points less than Delta’s. Yet, Delta’s P/E is 12.0x based on a 2025 EPS estimate of $5.91 and 9.9x based on $7.17 in 2026. 

Better operationally -- not to mention CEO Ed Bastian is one of America’s finest executives -- Delta is the better airline stock to own for the long haul in my opinion. 

You Have to Love TJX’s Business Model

Except for Costco (TJX), TJX probably has the best business model in U.S. retail. Shoppers love visiting its many store concepts: TJ Maxx, Marshalls, HomeGoods, Winners, HomeSense, and TK Maxx. 

When I lived in Toronto, with a considerable number of Winners, Marshalls, and HomeSense stores, it made sense to visit different locations at different times because of their curated style, where products displayed depended on the availability of quality buys at discounted prices. As a result, the shopping experience is often described as a “scavenger hunt.”

Whether it was Ben Cammarata (CEO from 1987 to 2000), Ted English (January 2000 to September 2005), Carol Meyrowitz (January 2007 to January 2016 ), or the current boss, Ernie Herrman (January 2016 to today), the leadership has had a laser-focused business plan that delivers a shopping experience that keeps the customers coming back.     

TJX went public in June 1987. Its shares have appreciated by 26,249% over the 38+ years since, with a compound annual growth rate (CAGR) of 15.8%. I’ll take that kind of long-term performance every day and twice on Sundays.

In November, TJX reported Q3 2026 results, including 5% same-store sales growth, 12% earnings-per-share growth, and 7% revenue growth. 

As a result, it increased its guidance for 2026 same-store sales growth, pretax profit margin, and earnings per share. It now expects 4% same-store sales growth, a pretax profit margin of 11.6%, and $4.65 EPS at the midpoint of its guidance, a 9% increase over 2025.  

Analysts are much more enthusiastic about TJX stock than they are about LUV. Of the 22 covering TJX, 18 rate it a Buy (82%), compared with 7 Buys (27%) among 26 analysts for LUV.

In fiscal 2026 (January year-end), analysts expect TJX to earn $4.68 a share, in lockstep with the company’s estimate. Based on that, its shares trade at 33.1 times 2026 EPS and 30.0 times the 2027 estimate of $5.16. 

Bottom Line: While Southwest’s recovery from its lean years post-COVID appears to be gaining traction, TJX is the better buy for anyone looking for a well-run company to own for the long haul.

If TJX and Southwest were sports teams, the former would be starting, while the latter would be riding the bench. 

More news from Barchart

• As Visa Rolls Out Stablecoin Settlement, Should You Buy, Sell, or Hold the Blue-Chip Stock?
• Cathie Wood Keeps Buying the Dip in CoreWeave Stock. Should You?
• JPMorgan Says the Dip in Broadcom Stock Is a Screaming Buy. Are You Loading Up on Shares Now?
• Is SoundHound Stock a Buy for 2026? This Analyst Thinks So.