Ticker Talk: The TJX Companies, Inc. (TJX)

1:01 PM

Photo by Sujal

When people think T.J. Maxx they typically think 'discount' and not 'profit' but if you were an investor in The TJX Companies, Inc. you'd be seeing much more of the latter. TJX consists of T.J. Maxx, HomeGoods, and Marshall's in the U.S., as well as Winners and T.K. Maxx abroad. Their international chain of off-price department stores is the largest in the United States and is based not too far from Boston in Framingham. 

It trades on the NYSE under the ticker symbol TJX, and like Ralph Lauren (RL) is a part of the S&P 500 index. TJX had their IPO back in 1987 (maybe this is why I can't find it's exact IPO price, but it was very low) and since then has been generating strong, steady performance. It's fairly widely regarded as a strong, well performing stock. Investors often call it a 'buy,' and at very least, a 'hold.' 

Before the market crash in 2008, TJX was trading at about $18.00 per share and had been slowly, but steadily increasing. As the market recovered and shoppers became savvier, TJX has been approaching $50 per share, a price that I think is still pretty fair. They have consistently paid dividends to their investors (small returns paid to the investor at a certain price per share held) and recently announced a quarterly dividend of $0.15 per share. 

I know I stop into T.J. Maxx and Marshall's pretty frequently when I need something specific, or am on the hunt for a great deal. In fact, Marshall's is my go-to for inexpensive, quality cookware and home goods. Their strong social media presence and distinct branding (search #Maxxinista on Twitter or Facebook) also gives them an edge over competitors like A.J. Wright and Ross. 

I think many American's are still very price conscious and careful with their shopping, and that makes me believe TJX will continue to be profitable in their operations. I'm keeping my eye on this 'buy.'


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