Core Insights - Costco Wholesale Corporation (COST) and The TJX Companies, Inc. (TJX) are leading players in the Retail–Discount Stores industry, with Costco having a market capitalization of approximately $421.8 billion and TJX at around $155.6 billion [1][2] - The key question is which of these retail giants presents a better investment opportunity amid changing consumer habits and economic volatility [3] Costco Overview - Costco's membership-based model is a key growth driver, with high renewal rates indicating strong customer loyalty and a recurring revenue stream [4] - The company is enhancing its digital capabilities and fulfillment network, investing in e-commerce, delivery services, and flexible payment options to create a seamless omnichannel experience [5] - Costco maintains competitive pricing and healthy margins through rigorous cost control and operational efficiency, leveraging bulk purchasing power and an efficient supply chain [6] - The success of Kirkland Signature, Costco's private-label brand, supports margin expansion and enhances competitive differentiation [7] TJX Companies Overview - TJX Companies has demonstrated consistent operational strength with a resilient business model that resonates with consumers seeking value and quality [8] - The company's exceptional merchandising and sourcing capabilities allow it to offer high-quality products at attractive prices, contributing to steady traffic growth across its banners [9] - In Q2 fiscal 2026, TJX reported earnings of $1.10 per share, a 15% year-over-year increase, driven by a 7% rise in consolidated net sales [10][11] - TJX plans to open over 1,800 additional stores and sees growth opportunities through its joint venture in Mexico and investments in the Middle East [12][13] Financial Performance and Estimates - The Zacks Consensus Estimate for Costco's current fiscal-year sales and EPS suggests year-over-year growth of 8.2% and 11.7%, respectively [14] - For TJX, the current fiscal-year sales and EPS estimates indicate a year-over-year increase of 5.4% and 7.5%, respectively [16] - Costco's stock has advanced 5.5% over the past year, while TJX shares have surged 19%, both outperforming the industry's modest rise of 3.1% [19] Valuation Comparison - Costco is trading at a forward 12-month P/E ratio of 48.59, lower than its one-year median of 50.61, while TJX's forward P/E ratio stands at 28.76, above its median of 27.03 [20] Investment Outlook - Both Costco and TJX possess unique strengths, but TJX appears to have an edge due to broader growth opportunities, store expansion potential, and effective navigation of economic cycles [22]

Group 1 - TJX has shown strong year-to-date performance, returning approximately 15.8%, outperforming the average gain of 10.4% in the Retail-Wholesale sector [4] - The Zacks Consensus Estimate for TJX's full-year earnings has increased by 2.5% over the past quarter, indicating improved analyst sentiment and earnings outlook [4] - TJX holds a Zacks Rank of 2 (Buy), suggesting it has favorable characteristics to outperform the market in the near term [3] Group 2 - The Retail-Wholesale sector includes 201 individual stocks and currently has a Zacks Sector Rank of 10, indicating its relative strength compared to other sectors [2] - Within the Retail - Discount Stores industry, TJX is performing better than the average gain of 4.2% this year, as it is part of a group ranked 73 in the Zacks Industry Rank [6] - Dutch Bros, another stock in the Retail-Wholesale sector, has also outperformed with an 11% year-to-date increase, and it holds a Zacks Rank of 2 (Buy) [5]

Summary of Key Points Group 1: Stock Analysis - Apple: The latest iPhone 17 models are considered a bargain, especially with trade-in values and provider incentives [1] - Amazon: Potential for upside if margin expansion continues, particularly in e-commerce and cloud growth [1] - Abbott Laboratories: Valued at approximately 24 times earnings, seen as a high-quality med tech stock worth holding [1] - Broadcom: Recent profit-taking due to exceeding 5% portfolio weighting, but long-term outlook remains positive [1] - Boeing: Newly added to the portfolio, expected to benefit from trade policies and has significant multi-year upside potential [1] - BlackRock: Described as a "bull market stock," with a focus on fast-growing investments [1] - Bristol Myers Squibb: Awaiting results from upcoming studies on its schizophrenia drug, Cobenfy, which could improve sentiment [1] - Capital One: Anticipating share repurchases post-Discover acquisition, with strong management praised [1] - Costco: Long-term outlook remains positive despite recent struggles attributed to market perception [1] - Salesforce: Current levels are not recommended for buying or selling ahead of the Dreamforce conference [1] - CrowdStrike: Ambitious target of $20 billion in annual recurring revenue set, indicating strong management confidence [1] - Cisco Systems: Continued support despite underperformance, with a solid dividend [1] - DuPont: Progressing towards a planned breakup, with Qnity expected to unlock more value [1] - Danaher: Facing headwinds from China but announced a significant buyback [1] - Disney: Shares have stalled, but theme park business remains strong [1] - Dover: Future outlook remains bright despite recent disappointing earnings [1] - Eaton: Potential for increased business from data centers as AI spending rises [1] - GE Vernova: High valuation justified by demand for energy generation in AI infrastructure [1] - Goldman Sachs: Expected revenue growth in investment banking and attractive wealth management business [1] Group 2: Additional Stock Insights - Home Depot: Likely to trim position due to housing market turnaround not meeting expectations [2] - Honeywell International: Shares lagging until split is complete, but value remains [2] - Linde: Continues to deliver for shareholders despite challenging end markets [2] - Eli Lilly: Position maintained due to strong performance and potential game-changing products [2] - Meta Platforms: Dominance in advertising market bolstered by generative AI [2] - Microsoft: Attractive long-term investment, with potential for trimming positions [2] - Nvidia: Partnership with Intel solidifies its leadership in GPUs [2] - Palo Alto Networks: High valuation justified by leadership in cybersecurity [2] - Starbucks: Promising turnaround plan under new CEO [2] - TJX Companies: Strongest earnings performance seen, recognized as a top retail performer [2] - Texas Roadhouse: Stock performance tied to cattle futures, expected surge in share price [2] - Wells Fargo: Positive outlook with increased buybacks and diversification into fee-based businesses [2]

Core Insights - The TJX Companies, Inc. is trading at a modest discount compared to the Zacks Retail - Discount Stores industry, with a forward 12-month P/E ratio of 28.83, slightly below the industry average of 30.27 [1][10] - Over the past three months, TJX stock has surged 14.3%, outperforming the industry, the Zacks Retail and Wholesale sector, and the broader S&P 500 [6][10] - Management raised fiscal 2026 sales and EPS guidance, reflecting strong momentum and confidence in sustaining growth [10][17] Valuation and Performance - TJX's valuation profile is balanced compared to peers like Costco, Ross Stores, and Burlington, trading at a premium to off-price rivals while being cheaper than high-growth peers [5][10] - The stock closed at $140.04, 3.8% below its 52-week high of $145.58, and trades above its 50-day and 200-day moving averages, indicating a bullish trend [9][11] Growth Drivers - TJX's flexible off-price model allows quick adjustments to consumer trends, driving customer engagement and repeat visits [14] - The company reported a 4% increase in comparable store sales in Q2 of fiscal 2026, with broad-based gains across divisions [15] - Expansion remains a key strategy, with plans to add over 1,800 locations, including approximately 130 net new stores for fiscal 2026 [16][17] Financial Outlook - Management's updated guidance for fiscal 2026 includes projected net sales of $59.3-$59.6 billion and EPS of $4.52 to $4.57, indicating growth from the previous year [17] - The Zacks Consensus Estimate for EPS has seen upward revisions, with expectations of 7.5% growth this year and 10% next year [18] Challenges - Currency and trade issues are significant headwinds, with management expecting unfavorable foreign exchange to reduce EPS growth by about 1% [19] - The retail environment remains highly promotional, which could limit pricing power and affect traffic and profitability [20]

Core Viewpoint - The TJX Companies, Inc. has declared a quarterly dividend of $0.425 per share, payable on December 4, 2025, to shareholders of record on November 13, 2025 [1] Company Overview - The TJX Companies, Inc. is a Fortune 100 company and the leading off-price retailer of apparel and home fashions in the U.S. and globally [1] - The company's mission is to deliver great value to customers every day [1]

Core Insights - The TJX Companies, Inc. reported a consolidated comparable store sales increase of 4% in Q2 of fiscal 2026, exceeding internal projections and contributing to an updated full-year outlook [1][8] - The strong performance was broad-based, with customer transactions rising across all divisions, indicating the effectiveness of its value-oriented strategy [1] Sales Performance - Marmaxx (U.S.) experienced a 3% growth in comparable sales, driven by increased customer transactions and a higher average basket size [2] - HomeGoods (U.S.) achieved a notable 5% growth in comparable sales, with strong results from both HomeGoods and HomeSense banners [2] - TJX Canada reported a remarkable 9% increase in comparable sales, while TJX International saw a solid 5% gain, particularly strong in Europe and Australia [2] Financial Guidance - Due to the strong sales performance, management raised the full-year guidance for both pretax profit margin and earnings per share (EPS) [3] - The updated EPS guidance is now projected to be in the range of $4.52 to $4.57, compared to the previous guidance of $4.34 to $4.43 [3][4] - This represents a 6% to 7% increase from the year-ago figure of $4.26, highlighting the connection between sales performance and profitability confidence [4] Competitive Landscape - Costco Wholesale Corporation reported a total company comparable sales growth of 5.7% in Q3 of fiscal 2025, with U.S. comparable sales rising 6.6% [5] - Burlington Stores, Inc. achieved a 5% comparable sales increase in Q2 of fiscal 2025, maintaining cautious guidance for the second half [6] Valuation and Estimates - TJX shares have gained 4.8% in the past month, contrasting with a 1.3% decline in the industry [7] - The company trades at a forward price-to-earnings ratio of 28.74X, lower than the industry average of 30.63X [10] - The Zacks Consensus Estimate for TJX's fiscal 2026 and 2027 earnings implies year-over-year growth of 7% and 10.3%, respectively [11]

Industry Overview - The retail industry is experiencing a "barbell" effect, with significant growth at both the high-end and low-end, while the middle segment, exemplified by Target Corp., is being squeezed out [1] - Discount retailers like TJX Companies are reporting record revenues and stock gains, while luxury brands such as ULTA Beauty and Kate Spade are also seeing strong sales and maintaining healthy margins [1] Consumer Behavior - Consumers are increasingly seeking value, whether through discounted products or durable luxury items, leading to a K-shaped spending pattern that favors affluent households [2] Company Performance: Williams-Sonoma - Williams-Sonoma has shown resilience against tariff impacts, managing to maintain margins through inventory management and cost reductions [4][5] - The company reported earnings per share (EPS) and revenue that exceeded analyst expectations, with a 3.7% year-over-year growth in comparable sales and an increase in full-year revenue guidance to 2%-5% [7] - The stock has increased by over 30% in the last three months, indicating strong business performance [8] Company Performance: Ralph Lauren - Ralph Lauren has demonstrated resilience in the retail sector, with a 13.7% year-over-year revenue growth to $1.72 billion in fiscal Q1 2026, and an increase in full-year guidance despite inflation concerns [11] - The stock has risen more than 35% year-to-date, supported by strong earnings and a 160-basis-point gross margin increase [10] Company Performance: Tapestry Inc. - Tapestry, which includes brands like Kate Spade and Coach, reported a record revenue of $7 billion for FY 2025, driven by double-digit growth from the Coach brand [15] - The company achieved 8.3% year-over-year growth in revenue for fiscal Q4 2025, with EPS of $1.02, both surpassing analyst projections [17]

Company Overview - The TJX Companies, Inc. (NYSE:TJX) is an off-price retailer that provides a variety of products including apparel, footwear, accessories, home fashions, furniture, décor, and seasonal merchandise through both physical stores and e-commerce platforms [2]. Performance Metrics - TJX reported a same store sales growth of 4% in the first half, which is considered remarkable in the retail sector [1]. - The company has experienced accelerating revenue growth across all four of its divisions, alongside healthy gross margin expansion, contributing to a positive stock performance post-earnings [1]. Market Position - Jim Cramer highlighted TJX as the highest quality operator in the off-price retail space, emphasizing its strong value proposition compared to other retailers [1].

Core Insights - The TJX Companies, Inc. (TJX) is reinforcing its position as a leading value retailer by offering a strong combination of brand, fashion, quality, and price across global markets [1] - The company plans to open over 1,800 additional stores in existing countries and Spain, with a focus on growth in its Mexico joint venture and investments in the Middle East [2][9] - As of the end of Q2 fiscal 2026, TJX operated 5,134 stores, with plans for 130 net new stores and nearly 500 store remodels this fiscal year [3][4] Store Expansion Strategy - TJX's management is confident in achieving approximately 3% net unit growth in the coming years, supported by flexible buying and supply chain systems [4] - Competitors in the store expansion space include Ross Stores, which plans to add 90 stores in fiscal 2025, and Burlington Stores, which aims for 100 net new stores in the same period [5][6][7] Financial Performance and Valuation - TJX shares have increased by 16.6% year-to-date, outperforming the industry growth of 5.6% [8] - The company trades at a forward price-to-earnings ratio of 29.06X, compared to the industry average of 31X [10] - The Zacks Consensus Estimate indicates year-over-year earnings growth of 7% for fiscal 2026 and 10.3% for fiscal 2027, with EPS estimates trending upward [11][12]

Core Insights - The Marshalls Good Stuff Accelerator Program is entering its second year, continuing to provide women with resources for personal and professional growth [1][3] - The program aims to address the access gap for women, as highlighted by research indicating that one in three women feel they lack necessary resources [4] Program Details - The program offers a year-long virtual experience for 40 selected women, including live mentorship sessions, peer coaching, and a one-time grant of $5,000 [5][6] - Participants will have full access to Luminary Collective PLUS, which includes over 25 monthly virtual events and networking opportunities [5] Impact and Success - Initial participants reported significant progress, with 95% indicating they feel they are making strides toward their goals [6][9] - The program has facilitated various achievements, such as launching businesses and enhancing personal confidence [6] Application Process - Applications for the program are open until October 14, 2025, with selections made in early December [7] - The program will run from January 2026 to December 2026 [7]