Update shared on 11 Nov 2025
Fair value Increased 0.31%Analysts have raised their price target for TJX Companies slightly, from approximately $151.37 to $151.84. They cite strong business performance, robust operating margins, and a solid outlook supported by recent earnings results.
Analyst Commentary
Recent analyst notes underscore TJX Companies' strong market position, with bullish views highlighting operational excellence and robust results, while some express caution about valuation and future growth risks.
Bullish Takeaways- Bullish analysts highlight TJX's significantly higher return on equity and operating margin compared to industry peers, reinforcing the company's competitive advantage.
- Recent quarterly results have exceeded expectations, with both top and bottom line beats seen across all banners. This supports optimism for continued outperformance.
- Guidance for next year has been raised, reflecting positive momentum and sustained business performance. Some analysts see potential for the company to surpass its own forecasts.
- Strong execution is evident as all divisions report healthy, traffic-driven comparable sales and a sequential acceleration compared to prior periods.
- Some analysts note that with shares trading near all-time valuation highs, there may be little room for error in future quarters.
- Guidance, although raised, is viewed as somewhat cautious compared to the positive commentary. This raises questions about the sustainability of recent beats.
- Concerns exist that continued strong execution is necessary to justify current valuation levels, particularly given high expectations from the market.
What's in the News
- TJX Companies is capitalizing on excess inventory from other retailers in the tariff economy, contributing to its market share growth (The Wall Street Journal).
- The company has completed a major buyback program, repurchasing over 20 million shares for $2.5 billion since February 2024.
- Full-year fiscal 2026 earnings guidance has been raised, with comparable sales expected to rise 3% and diluted earnings per share forecasted between $4.52 and $4.57, representing a 6% to 7% increase over last year.
- Third quarter fiscal 2026 guidance forecasts comparable sales to be up 2% to 3%, with a pretax profit margin slightly lower than last year and earnings per share still expected to grow 3% to 4%.
Valuation Changes
- Consensus Analyst Price Target has risen slightly, from $151.37 to $151.84.
- Discount Rate has increased marginally, moving from 8.31% to approximately 8.36%.
- Revenue Growth forecast has decreased, shifting from 5.81% to 5.51%.
- Net Profit Margin projection is up, edging from 9.15% to 9.25%.
- Future P/E ratio estimate has increased modestly, from 33.03x to 33.11x.
Disclaimer
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