The TJX Companies, Inc. (TJX) Hits Fresh High: Is There Still Room to Run?

Shares of TJX (TJX) have been strong performers lately, with the stock up 3.7% over the past month. The stock hit a new 52-week high of $146.46 in the previous session. TJX has gained 20.2% since the start of the year compared to the 5.8% gain for the Zacks Retail-Wholesale sector and the 5.9% return for the Zacks Retail - Discount Stores industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 20, 2025, TJX reported EPS of $1.1 versus consensus estimate of $1.01.For the current fiscal year, TJX is expected to post earnings of $4.64 per share on $60.31 in revenues. This represents a 8.92% change in EPS on a 7% change in revenues. For the next fiscal year, the company is expected to earn $5.04 per share on $62.76 in revenues. This represents a year-over-year change of 8.64% and 4.07%, respectively.Valuation MetricsTJX may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.TJX has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 31.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 23.5X. On a trailing cash flow basis, the stock currently trades at 26.5X versus its peer group's average of 18.7X. Additionally, the stock has a PEG ratio of 3.22. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, TJX currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if TJX passes the test. Thus, it seems as though TJX shares could have a bit more room to run in the near term.How Does TJX Stack Up to the Competition?Shares of TJX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Dollar General Corporation (DG). DG has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of D.Earnings were strong last quarter. Dollar General Corporation beat our consensus estimate by 19.23%, and for the current fiscal year, DG is expected to post earnings of $6.13 per share on revenue of $42.5 billion.Shares of Dollar General Corporation have gained 0.2% over the past month, and currently trade at a forward P/E of 17.34X and a P/CF of 10.28X.The Retail - Discount Stores industry is in the top 11% of all the industries we have in our universe, so it looks like there are some nice tailwinds for TJX and DG, even beyond their own solid fundamental situation.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks