Are Investors Expecting Too Much From TJX?
Wall Street has a habit of getting overly excited about things, often projecting strong financial performance over a quarter or two into the indefinite future. When this happens, investors sometimes push stock prices to levels that, in hindsight, appear unrealistic.
TJX Companies (NYSE: TJX) is currently trading near all-time highs after posting strong fiscal 2024 results. Are investors too optimistic here about the future performance of this discount retailer?
In the fiscal fourth quarter of 2024, TJX managed to grow same-store sales by 5%. That was above even the company's own internal expectations. It was, without question, a strong showing. Notably, the majority of the increase was driven by an increase in store traffic. In other words, more people were looking for the bargains that TJX offers its customers in its multiple brands of off-price stores, including T.J. Maxx, Marshalls, HomeGoods, HomeSense, Winners, and Sierra.
Source Fool.com
