Yahoo Finance Here's How Much a $1000 Investment in TJX Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in TJX (TJX) ten years ago? It may not have been easy to hold on to TJX for all that time, but if you did, how much would your investment be worth today?
TJX's Business In-Depth
With that in mind, let's take a look at TJX's main business drivers.
Based in Framingham, MA, The TJX Companies, Inc. is a leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The company’s broad range of assortments at varying prices helps it to reach out to a broad range of consumers. In addition to these, The TJX Companies tries to attract consumers through rapid turn of inventories. As of Jul 29, 2023, the company operated a total of around 4,900 stores in nine countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, Austria, the Netherlands, and Australia, and five e-commerce sites.
The company has been able to distinguish itself from traditional retailers on the grounds of opportunistic buying strategies and flexible business model. In fact, The TJX Companies’ low-cost structure sets it apart from other traditional retailers. In order to maintain control on costs, the company engages in the promotion of retail banners, rather than specific brands. The company’s distribution network is also designed in a manner such that helps curtailing costs. Moreover, the company emphasizes on creating strong relations with vendors across different countries, in order leverage buying power.
The TJX Companies operates through four business segments:
In the U.S., it operates through two segments, namely, Marmaxx (through stores under the names of T.J. Maxx and Marshalls) and HomeGoods.
Marmaxx divisions (62.1% of Q1 fiscal 25 Sales) sell family apparel (including footwear and accessories), home fashions (including home basics, accent furniture, lamps, rugs, wall décor, decorative accessories and giftware) and other merchandise.
HomeGoods (16.7% of Q1 fiscal 25 Sales) chain offers home basics, giftware, accent furniture, lamps, rugs, wall décor and decorative accessories from around the world, seasonal and other merchandise.
In Canada, it operates through TJX Canada (8.9% of Q1 fiscal 25 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (12.3% of Q1 fiscal 25 Sales) through stores under the names of T.K. Maxx and HomeSense.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For TJX, if you bought shares a decade ago, you're likely feeling really good about your investment today.
A $1000 investment made in June 2014 would be worth $4,185.54, or a gain of 318.55%, as of June 27, 2024, according to our calculations. This return excludes dividends but includes price appreciation.
The S&P 500 rose 179.88% and the price of gold increased 67.84% over the same time frame in comparison.
Analysts are anticipating more upside for TJX.
The TJX Companies' off-price business model, strategic store locations, impressive brands and supply-chain management are working well. The company has been benefiting from robust growth in its Marmaxx, HomeGoods and International segments, a trend that continued in first-quarter fiscal 2025. Comparable store sales saw a rise, indicating sustained momentum. The company anticipates a 2-3% rise in comparable store sales for fiscal 2025. With a solid pre-tax margin, the company is poised for steady profitability, supported by improved merchandise margins. Also, management is on track with expansion efforts. However, the company has been grappling with increased costs for a while now. Rising selling, general and administrative (SG&A) expenses are a concern for the company. Unfavorable foreign currency fluctuations might also act as a deterrent.
Shares have gained 8.97% over the past four weeks and there have been 7 higher earnings estimate revisions for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.
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
