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TJX Companies (TJX), the parent of TJ Maxx, Marshalls, and HomeGoods, reported its fiscal Q1 2026 earnings today, surpassing expectations with earnings per share of $0.92 and revenue of $13.1 billion. Comparable store sales increased by 3%, in line with the higher end of the company's projections and pretax margins of 10.3% exceeded company estimates. TJX also returned $1 billion to shareholders in the form of share repurchases and dividends in the quarter.
TJX Companies continues to impress me—not just among retail stocks, but as one of the most consistent long-term stock performers in the entire market. While the discount retail sector includes standout names like Costco (COST), Ross Stores (ROST), and Burlington Stores (BURL), TJX has outpaced them all over the last two decades. The stock has compounded at an incredible 16.7% annually, more than 20xing investors money in that time.
Although shares are down slightly following today’s earnings beat, TJX still benefits from near-term bullish catalysts, including a Zacks Rank #2 (Buy) rating, which reflects positive earnings estimate revisions and continued analyst confidence.
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What Drives TJX Steady Stock Returns?
It wasn’t anything fancy that has driven TJX Companies’ enduring returns—steady earnings growth, share buybacks, and moderate multiple expansion. Below we can see how TJX annual EPS have grown from just $0.06 in 1996 to $4.26 today.
Meanwhile, management has reduced shares outstanding by 60% since 1998, showing a commitment to returning cash to shareholders. And finally, TJX’s median earnings multiple has risen from ~19x to 24.4x, depending on which timeframes you measure.
Today, TJX Companies is trading at a premium valuation of 30.4x, demonstrating investors willingness to pay up for a quality company.
Image Source: Zacks Investment Research
TJX Earnings Forecasts Vs. COST, ROST and BURL
As I noted, the discount-retail industry has several very strong players in it, which shows how lucrative of a business model it can be, even with several competitors. Though TJX has a premium valuation, its earnings growth forecasts are not particularly high, currently at 9.1% annually over the next three to five years.
Costco, often praised for its cult-like customer loyalty and unique subscription model, carries a similarly modest growth forecast of 9.4%. However, investors are paying a hefty premium for that consistency as COST currently trades at an elevated 57.7x forward earnings.
Ross Stores sits in a more moderate position, with earnings growth estimates of 8% and a valuation of 24x forward earnings, offering a decent blend of value and stability.