TJX Shares Surge 2.71% on Revised Earnings Guidance Trading Volume Ranks 38th in Market Activity

TJX Companies (TJX) surged 2.71% on August 20, 2025, with a trading volume of 1.85 billion shares, a 104.16% increase from the prior day, ranking 38th in market activity. The stock’s rally followed an upward revision of its full-year earnings per share (EPS) guidance to $4.52–$4.57 from $4.34–$4.43, driven by stronger-than-expected second-quarter results and improved tariff management. The company reported Q2 EPS of $1.10, exceeding forecasts, with net sales rising 7% to $14.4 billion and same-store sales climbing 4%.

CEO Ernie Herrman highlighted robust profit margins and consumer demand for off-price goods amid economic uncertainty, though Q3 EPS guidance of $1.18 fell slightly short of analyst expectations. The revised outlook reflects confidence in sustained growth, with annual EPS projected to rise 6–7%. However, the stock’s 31x valuation has sparked debate among investors, with some questioning whether anticipated earnings gains justify current price levels.

The company’s strategy of leveraging cost-conscious shoppers and optimizing inventory positioning has strengthened its competitive edge in the S&P 500. Analysts noted that TJX’s off-price model, which avoids direct exposure to import tariffs by sourcing excess inventory, provides resilience in volatile markets. Despite near-term guidance caution, the long-term earnings trajectory and operational efficiency remain central to investor sentiment.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day from 2022 to now delivered moderate returns. The 1-day return was 0.98%, with a total return of 31.52% over 365 days. This indicates the strategy captured some short-term momentum but also reflected market volatility and potential timing risks.