TJX: The Off-Price Champion Leading the Retail Charge

The retail sector is a battleground of shifting trends, inflation pressures, and consumer preferences. Amid this chaos, one company has consistently outperformed: The TJX Companies (TJX). With its off-price model, global footprint, and analyst-backed optimism, is TJX the best retail stock to buy right now? Let’s dive into the data.

TJX’s Financial Firepower: Beating Expectations and Expanding Globally

TJX’s Q1 2025 earnings demonstrated resilience, with EPS of $0.93—a 13.4% jump from the prior year—and revenue of $56.42 billion for fiscal 2024. Analysts are impressed: Citigroup recently upgraded the stock to Buy, and the consensus “Strong Buy” rating reflects 19 analysts’ confidence.

The company’s international growth is a standout driver. Canadian operations saw a 10% comp sales surge, while European and Australian stores added 7% growth. With plans to open 130 net new stores and remodel 500 locations in 2026, TJX is doubling down on expansion.

Why TJX Outshines Competitors

Let’s pit TJX against key rivals:

1. Ross Stores (ROST): Caution Amid Growth

Ross reported a 3% Q4 sales increase but faces headwinds. Its fiscal 2025 guidance projects comparable sales to drop -1% to +2%, citing “unseasonable weather and macroeconomic volatility.” While Ross has a strong cash position ($4.7B), its near-term outlook is muted compared to TJX’s $58.6B revenue target for 2026.

2. Burlington (BURL): High Growth, Higher Risks

BURL’s 30.9% 2025 EPS growth projection looks flashy, but its $4.81B debt and 43.7x P/E ratio raise red flags. TJX’s 25.8x P/E and $6.1B operating cash flow make it a safer bet. Burlington’s stock has slumped -20.5% YTD, while TJX rose +6% in the same period.

Technical and Fundamental Strength

• Stock Performance: TJX’s $127.62 share price sits near multi-year highs, with technical signals showing 6 bullish vs. 3 bearish indicators. Analysts see a $150 price target, implying 17.5% upside.
• Margin Resilience: Despite forex headwinds, TJX’s pretax margins hit 11.6% in late 2024—up 70 basis points year-over-year.
• Dividend & Buybacks: The company returned $4.1B to shareholders in 2024, including a 10% dividend hike, signaling confidence in its cash flow.

The Risks, But They’re Manageable

• Foreign Exchange: TJX’s international sales face forex pressures, but its global diversification (stores in 18 countries) mitigates this.
• Inventory Management: The off-price model depends on sourcing surplus goods. TJX’s 1,300+ buyers and relationships with 21,000+ vendors give it an edge.

Conclusion: TJX Deserves the “Best Retail Stock” Crown

TJX isn’t just a winner—it’s the gold standard of off-price retail. With:
- Analyst Love: A “Strong Buy” consensus and upgrades from top firms.
- Global Dominance: 24,000+ stores across 18 countries, fueling $58B+ in projected 2026 sales.
- Valuation Edge: A 25.8x P/E vs. BURL’s 43.7x, plus $6.1B cash flow to fuel growth.
- Technical Momentum: Bullish signals and a $150 price target suggest more upside.

While competitors like Ross and Burlington face near-term hurdles, TJX’s scalable model, dividend discipline, and expansion playbook make it the safest, most rewarding bet. Buy TJX now—before the crowd catches on.