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If You Invested $1000 in TJX a Decade Ago, This is How Much It'd Be Worth Now

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How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in TJX (TJX - Free Report) ten years ago? It may not have been easy to hold on to TJX for all that time, but if you did, how much would your investment be worth today?

TJX's Business In-Depth

With that in mind, let's take a look at TJX's main business drivers.

Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies tries to attract consumers through rapid turn of inventories. As of Jul 29, 2023, the company operated a total of around 4,900 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites.

The company has been able to distinguish itself from traditional retailers on the grounds of opportunistic buying strategies and flexible business model. In fact, The TJX Companies’ low-cost structure sets it apart from other traditional retailers. In order to maintain control on costs, the company engages in the promotion of retail banners, rather than specific brands. The company’s distribution network is also designed in a manner such that helps curtailing costs. Moreover, the company emphasizes on creating strong relations with vendors across different countries, in order leverage buying power.   

The TJX Companies operates through four business segments:

In the U.S., it operates through two segments, namely, Marmaxx (through stores under the names of T.J. Maxx and Marshalls) and HomeGoods.

Marmaxx divisions (61.9% of Q2 fiscal 24 Sales) sell family apparel (including footwear and accessories), home fashions (including home basics, accent furniture, lamps, rugs, wall décor, decorative accessories and giftware) and other merchandise.

HomeGoods (15.8% of Q2 fiscal 24 Sales) chain offers home basics, giftware, accent furniture, lamps, rugs, wall décor and decorative accessories from around the world, seasonal and other merchandise.

In Canada, it operates through TJX Canada (9.6% of Q2 fiscal 24 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (12.7% of Q2 fiscal 24 Sales) through stores under the names of T.K. Maxx and HomeSense.

Bottom Line

Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TJX ten years ago, you're likely feeling pretty good about your investment today.

A $1000 investment made in September 2013 would be worth $3,453.51, or a 245.35% gain, as of September 15, 2023, according to our calculations. Investors should note that this return excludes dividends but includes price increases.

Compare this to the S&P 500's rally of 166.89% and gold's return of 38.61% over the same time frame.

Going forward, analysts are expecting more upside for TJX.

The TJX Companies' shares have outperformed the industry in the past three months. The company’s top and bottom lines beat the Zacks Consensus Estimate in the second quarter of fiscal 2024. Its off-price business model, strategic store locations, impressive brands and fashion products and supply-chain management have been working well. The TJX Companies is benefiting from its solid store and e-commerce growth efforts. TJX’s Marmaxx segment is doing particularly well, where comp store sales grew in the fiscal second quarter, backed by improved customer traffic. The recovery of the HomeGoods (U.S.) division bodes well. However, TJX has been grappling with high wage and supply-chain costs. It expects these costs to be deterrents in fiscal 2024. A high debt level poses a concern for the company. Currency might also act as a deterrent.

Shares have gained 6% over the past four weeks and there have been 10 higher earnings estimate revisions for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.

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