TJX Companies - AI Stock Analysis

Analysis generated November 19, 2025

TJX Companies Inc. is a leading off-price retailer of apparel and home fashions in the United States and worldwide. The company operates through four main segments: Marmaxx, HomeGoods, TJX Canada, and TJX International. Known for its value proposition, TJX's business model thrives on offering brand name and designer merchandise at significant discounts. As of the latest fiscal year, TJX operates more than 4,500 stores across various geographies, making it a dominant player in the retail space. The company’s focus on operation efficiency, merchandise sourcing, and a broad global presence have consistently generated high returns for investors.

Fundamental Analysis

The latest quarterly revenue for the TJX Companies stands at $14.4 billion. This marks a significant increase of 9.84% from the previous quarter, signaling robust short-term growth. When compared to the same quarter in the preceding year, revenue has seen a growth of 6.93%, suggesting a healthy year-over-year expansion. Strong revenue growth is a positive indicator of the company's market strength and capacity to attract customers.

Net income for the last quarter was reported at $1.24 billion. This is an impressive increase of 19.98% from the prior quarter and a 13.10% increase from the same quarter last year. Such substantial growth in net income reflects the company's ability to efficiently convert revenue into profit, highlighting strong operational efficiency.

The last quarter's EBITDA stood at $1.97 billion, marking an increase of 18.86% from the previous quarter and 12.55% from the year-ago period. A rising EBITDA indicates that the company is capable of generating higher income from its operating activities, thereby improving its profitability margins.

However, the current Price to Earnings (P/E) ratio for TJX Companies is 33.24. This relatively high ratio might suggest that the stock is overvalued, posing a potential risk for bearish investors. High P/E ratios often imply high growth expectations, but also increased sensitivity to market fluctuations.

Technical Analysis

The current stock price of TJX Companies is $145.94, showing an increase of 1.76% from the previous month. This upward movement aligns with a positive short-term trend. Over a one-year period, the stock has appreciated by 23.39%, indicating a strong long-term bullish trend.

The Simple Moving Average (SMA) for the last 10 days is 146.06, slightly higher than the previous SMA10 of 145.88. This upward deviation in SMA indicates a potential continuation in the stock's positive price momentum.

However, the Relative Strength Index (RSI) is at 78.9, suggesting the stock might be in overbought territory. An RSI above 70 typically signals that the stock could experience a pullback or period of consolidation, indicating a potential short-term bearish condition.

Alternative Data Analysis

Examining alternative data sources, TJX Companies has about 7,000 open positions, according to job board data. This number has surged by 46% over the last couple of months, signaling an aggressive expansion strategy. An increasing number of job postings often correlates with growth and expansion of business capabilities.

Employee sentiment at TJX Companies remains neutral, indicating neither significant optimism nor pessimism about the company's future among its workforce. Despite this, the company’s online presence showcases mixed trends. TJX's website receives approximately 15 million visitors, a figure that has remained stable in recent months. Customer engagement on social media presents a contrasting picture; their Instagram followers have grown by 6% to 13,000, but their Twitter followers decreased by 1% to 1,600, suggesting divergent levels of customer engagement.

Finally, AltIndex's AI score for TJX Companies stands at 74, which is considered a buy signal. This score reflects a synthesized view of fundamental, technical, and alternative data analysis, projecting a favorable outlook for the stock.

Conclusion and Recommendation

In conclusion, TJX Companies demonstrates a strong financial performance with solid revenue, net income, and EBITDA growth. Despite the high P/E ratio possibly indicating overvaluation, the company’s robust fundamentals and positive technical indicators suggest continued upward momentum. Additionally, alternative data shows promising signs of business expansion through increasing job postings and a stable to growing online presence.

Given the comprehensive analysis, TJX Companies stock appears to be a promising investment opportunity with a potentially bullish outlook. However, prospective investors should be mindful of the high P/E ratio and overbought RSI, which might suggest some degree of market correction in the short term. Therefore, the recommendation would be to consider buying TJX Companies' stock, keeping an eye on market conditions for the optimal entry point.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.