TJX prospers in an evolving retail environment

Article Excerpt

Many traditional bricks-and-mortar retailers will continue to struggle against the COVID-spurred onslaught of online shopping. Some will even go out of business. But we believe TJX’s unique business model offers you the possibility of strong gains ahead, and we recommend the stock as a Power Buy. THE TJX COMPANIES, $60.19 (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.2 billion; Market cap: $66.0 billion; Yield: 2.0%), is a leading off-price retailer of clothing, accessories and home fashions. Off-price retailers purchase merchandise at below-wholesale prices and charge less than retail prices. Through their shares, investors tap a network of stores. In the U.S., TJX operates 1,285 T.J. Maxx locations, 1,155 Marshalls, 859 HomeGoods, 60 Sierra Trading Post outlets and 39 HomeSense locations. In Canada, it has 293 Winners outlets, 148 HomeSense locations and 106 Marshalls stores. TJX also operates in Europe, with 623 TK Maxx and 77 Homesense stores; and in Australia, with 70 TK Maxx outlets. TJX’s revenue in the quarter ended April 30, 2022,…