Why TJX Companies Stock Got Thrashed in August

TJX Companies' HomeGoods division reported a 7% rise in comparable sales for Q2 fiscal 2027, with net sales increasing 10% to $2.51 billion. The growth was driven by higher average basket sizes and more customer transactions, with strong performance across all categories and regions. Over the first half of fiscal 2027, comparable sales rose 8%, and net sales increased 10% to $5.01 billion.

Jim Cramer reclassified Caterpillar (CAT) as a data center stock due to its 29% Power Generation revenue growth, driven by AI infrastructure demand. CAT's shares surged 90% over the past year. Cramer suggested replacing CAT with TJX (TJX) and Wells Fargo (WFC) for diversification. Generac (GNRC) and Micron (MU) also saw gains from AI-related demand. CAT reported $20.54B in Q2 2026 revenue, up 24% YoY, with a forward P/E of 32.

After the Supreme Court struck down Trump's tariffs, companies like Walmart, Amazon, and Apple received billions in refunds. Walmart ($2.9B) cut prices on items, Amazon ($600M) absorbed costs, and Apple ($2.2B) plans U.S. reinvestment. Target ($994M) and Home Depot ($730M) also lowered prices. Consumers unlikely to get direct refunds.

TJX Companies stock hit a 52-week low of $135.5, down from $170, amid retail sector challenges. Despite stronger-than-expected Q2 results with $15.2B revenue and $1.22 EPS, analysts have mixed views. Jefferies downgraded to Hold with a $145 target, while Bernstein and UBS maintained bullish outlooks. The stock is considered undervalued by InvestingPro.

TJX Companies reported Q2 results with consolidated comparable sales up 4% and adjusted EPS up 11% to $1.22, raising its full-year profit outlook. HomeGoods and international divisions performed strongly, while Marmaxx (TJ Maxx and Marshalls) saw only 1% comparable sales growth. Management cited execution issues and expects Q3 EPS to grow 2-3% to $1.30-$1.32, citing higher fuel and freight costs. The company plans to open 500 more stores, accelerating its opening pace. Shareholders received $1.3

TJX Companies (TJX) stock fell 11% in a month despite a Q2 earnings beat and raised guidance. Comparable sales rose 4%, with HomeGoods and international segments performing well, but Marmaxx underperformed. Analysts cut forecasts, citing margin concerns. Ross Stores (ROST), another off-price retailer, saw a 10% sales increase and raised guidance, outperforming TJX. TJX trades at 26x P/E, while Ross trades at 29x. Investors may consider reducing TJX exposure due to relative performance and Marmax