Why TJX Stock Exploded Today: The Surge You Can’t Ignore
Retail giant TJX just delivered a market-shaking performance that left Wall Street scrambling.
Earnings Blowout Defies Retail Slump
The off-price retailer smashed expectations with numbers that would make even Amazon blush. Same-store sales surged while margins expanded—a rare double-play in today's inflationary environment. They didn't just beat estimates; they demolished them.
Guidance Upgrade Sends Shorts Running
Management's revised forecast caught the bears completely off guard. Instead of trimming expectations like every other retailer this quarter, TJX raised them—aggressively. The guidance hike suggests they're gaining market share while competitors bleed.
The Hidden Catalyst Everyone Missed
While analysts were busy downgrading the entire sector, TJX's inventory arbitrage model hit perfection. They're scooping up premium overstock at distressed prices while full-price retailers panic-clear inventory. It's almost like they planned this economic uncertainty.
Another quarter, another reminder that while Wall Street analysts play with spreadsheets, actual retailers are playing chess. The stock's popping because fundamentals finally matter again—at least until the next Fed meeting ruins everything.
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TJX Q2 earnings
TJX grew same-store sales 4%. Factoring in sales from newer stores, total sales growth reached 7%. Earnings growth was twice as good as sales -- up 15% year over year.
The company accelerated both sales and earnings growth between Q1 and Q2. H1 sales so far are up only 6%, and earnings 7%.
CEO Ernie Herrman pronounced himself "extremely pleased" with the numbers, noting sales, profit margins, and earnings are all growing "above our plan," leading management to raise guidance.
Is TJX stock a buy?
Not all the news is good. While Herrman says, "The third quarter is off to a strong start," TJX is still only guiding for 2% to 3% same-store sales growth in Q3, and earnings will be only about $1.18 per share, up 3.5% year over year and below analysts' forecast for a $1.22 quarterly profit.
On the plus side, TJX says earnings will grow 6% or 7% through the end of this fiscal year, to $4.52 to $4.57 per share, helped by better-than-expected profit margins. That's more than the $4.51 per share Wall Street forecast, and as much as an $0.18 improvement over previous guidance.
Still, a value investor can wonder: Is 3% sales growth, or even 7% profit growth, enough to justify TJX's rich 31-times-earnings valuation? No. It is not.
