Zacks Investment Ideas feature highlights: TJX Companies, Costco, Ross Stores and Burlington Stores

For Immediate ReleaseChicago, IL – May 22, 2025– Today, Zacks Investment Ideas feature highlights TJX Companies TJX, Costco COST, Ross Stores ROST and Burlington Stores BURL.TJX Companies: The Quiet Retail 20-Bagger StockTJX Companies, the parent of TJ Maxx, Marshalls, and HomeGoods, reported its fiscal Q1 2026 earnings today, surpassing expectations with earnings per share of $0.92 and revenue of $13.1 billion. Comparable store sales increased by 3%, in line with the higher end of the company's projections and pretax margins of 10.3% exceeded company estimates. TJX also returned $1 billion to shareholders in the form of share repurchases and dividends in the quarter.TJX Companies continues to impress me—not just among retail stocks, but as one of the most consistent long-term stock performers in the entire market. While the discount retail sector includes standout names like Costco, Ross Stores and Burlington Stores, TJX has outpaced them all over the last two decades. The stock has compounded at an incredible 16.7% annually, more than 20xing investors' money in that time.Although shares are down slightly following today's earnings beat, TJX still benefits from near-term bullish catalysts, including a Zacks Rank #2 (Buy) rating, which reflects positive earnings estimate revisions and continued analyst confidence.What Drives TJX Steady Stock Returns?It wasn't anything fancy that has driven TJX Companies' enduring returns—steady earnings growth, share buybacks, and moderate multiple expansion. Below we can see how TJX annual EPS have grown from just $0.06 in 1996 to $4.26 today.Meanwhile, management has reduced shares outstanding by 60% since 1998, showing a commitment to returning cash to shareholders. And finally, TJX's median earnings multiple has risen from ~19x to 24.4x, depending on which timeframes you measure.Today, TJX Companies is trading at a premium valuation of 30.4x, demonstrating investors willingness to pay up for a quality company.TJX Earnings Forecasts Vs. COST, ROST and BURLAs I noted, the discount-retail industry has several very strong players in it, which shows how lucrative of a business model it can be, even with several competitors. Though TJX has a premium valuation, its earnings growth forecasts are not particularly high, currently at 9.1% annually over the next three to five years.Costco, often praised for its cult-like customer loyalty and unique subscription model, carries a similarly modest growth forecast of 9.4%. However, investors are paying a hefty premium for that consistency as COST currently trades at an elevated 57.7x forward earnings.Ross Stores sits in a more moderate position, with earnings growth estimates of 8% and a valuation of 24x forward earnings, offering a decent blend of value and stability.Perhaps the most compelling growth/value trade-off comes from Burlington Stores, which boasts the highest projected earnings growth at 14.5% annually, while trading at 29.2x forward earnings.Should Investors Buy Shares in TJX, COST, BURL and ROST?For long-term investors, TJX Companies remains one of the most reliable names in retail. Its unmatched consistency, disciplined capital return strategy, and effective business model in off-price retail make it a quality core holding, even at a premium valuation.However, for those seeking stronger near-term earnings growth or a better growth-to-valuation tradeoff, Burlington Stores may be the most compelling alternative, while Ross Stores is interesting as well. Costco remains an excellent business, but its valuations leave less room potential downside risks.Bottom line: TJX is a textbook compounder, and its stock still earns consideration in any serious and well diversified portfolio.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.comhttps://www.zacks.comPast performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>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 Costco Wholesale Corporation (COST): Free Stock Analysis Report Ross Stores, Inc. (ROST): Free Stock Analysis Report Burlington Stores, Inc. (BURL): 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