Bill Gunderson

About the Author Bill Gunderson

Bill Gunderson is the CEO and Chief Market Strategist of Gunderson Capital Managment in San Diego, CA. He is also a professional money manager, former research analyst, author of Best Stocks Now, and developer of the Best Stocks Now smartphone app. He offers four free weeks to his weekly Best Stocks Now to Seeking Alpha readers. He also hosts a daily stock market radio show on AM1000 KCEO from 7am-8am. Bill has appeared on the Fox Business Channel and on Bloomberg radio numerous times. He has been published in Barron's, Forbes, and numerous other publications i.e. Los Angeles Business Journal, San Diego Union Tribune, Phoenix Business Journal, Salem News, Rochester Business Journal, and many others.

TJX Companies Inc (TJX): Still Executing To The Max

Discount clothing and home goods retailer TJX Companies Inc (NYSE:TJX) reported strong results last week, convincingly beating analyst estimates and guiding up both earnings and sales for the full year. TJX’s brands include T.J Maxx, Marshalls, HomeGoods, HomeSense, and Winners stores. In the mixed bag of retail, TJX has been one of the winners. Comparable sales growth came in at 6% for the second quarter versus 3% a year ago.

TJX also just announced it was acquiring discount Australian retailer Trade Secret for $58.5 million. The purchase will extend TJX’s international presence. Trade Secret operates 35 stores and sells branded apparel, footwear, and home accessories. TJX plans to expand its successful model into new markets overseas, like Australia and the Netherlands.

While other department stores retailers like Macy’s, Inc. (NYSE:M) have missed targets, TJX has been executing well, growing comp store sales across all its brands and geographies. Store growth expansion is one of the key components of TJX’s business strategy. It intends to grow its base of stores from 3,461 currently to at least 5,475 stores in its current markets.

TJX Europe and the U.S. HomeGoods chain are two of the company’s fastest growing segments. In addition, TJX is expanding its e-commerce presence with the successful launch of and it will be rolling out sites for its other brands.

Given its excellent execution and new growth initiatives, it is no wonder the stock was trading near new highs before the recent market sell-off.

TJX Chart

One of the critical components of TJX’s success is its buying power. TJX can contact a label and take over all its surplus inventory in one big swoop. Brand customers like this as they only have to worry about their merchandise appearing at one discounter instead of many helping avoid brand dilution. It’s a great business model and it has made for a great stock.

Let’s take a closer look!

Data from Best Stocks Now app

TJX is a large cap retailer with a market capitalization is $47.2 billion. I own the stock in my Conservative Growth accounts given its Conservative Risk profile.

Data from Best Stocks Now app

Retailers that consistently execute tend to command a premium valuation and TJX is no exception. Its trailing PE is 22 and its forward PE is 19. As a result, its Value Grade is a B.

Data from Best Stocks Now app

TJX has consistently delivered positive results in both good and bad retail environments. This has been rewarded with better-than-market returns for shareholders. Over the last year the stock is up 18.3%. It receives a Momentum Grade of B and a Performance Grade of A-.

Data from Best Stocks Now app

TJX ranks #43 in the more than 4100 stock Best Stocks Now universe. Its Stock Grade in an A- and it rates a Buy. TJX is one of the shining gems of the retail industry and should continue be so as long as it continues to execute to the max.

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