TJX(US:TJX) ZACKS·2025-04-15 17:15Core Viewpoint - TJX Companies is benefiting from a weakening consumer outlook, as more customers are seeking value through its off-price offerings, positioning the company favorably in a challenging retail environment marked by tariffs [1][10]. Company Overview - TJX is a diversified retailer that sources products from over 21,000 vendors across more than 100 countries, with less than 10% of its domestic merchandise imported from China, allowing it to mitigate tariff impacts [2]. - The company operates brands such as TJ Maxx, Marshalls, and HomeGoods, and has recently opened its 5,000th store, indicating ongoing expansion efforts [4]. Financial Performance - TJX stock has increased nearly 9% year-to-date and over 40% in the past year, outperforming the general market [5]. - The company reported fourth-quarter earnings of $1.23 per share, exceeding consensus estimates by 6%, and achieved revenue of $16.35 billion, surpassing revenue expectations [8][9]. Market Position - As rival retailers struggle with rising prices due to tariffs, TJX is positioned to gain market share by offering substantial discounts on lower-priced merchandise [3]. - The stock remains above key technical levels, with upward-sloping 50-day and 200-day moving averages, indicating a strong market position [7]. Growth Potential - TJX holds a Zacks Rank of 3 (Hold) and has consistently exceeded earnings expectations over the past twelve quarters, with a trailing four-quarter average earnings surprise of 5.5% [8]. - The company is rated with an 'A' in Zacks Growth Style Score, suggesting further upside potential based on promising earnings and sales growth metrics [11].