Costco and Three Additional Discount Retail Stocks to Keep an Eye on This Holiday Season
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 16 2025
0mins
Should l Buy TJX?
Source: NASDAQ.COM
Overview of the Retail – Discount Stores Industry: This industry focuses on providing value-for-money products to price-conscious consumers, operating on a low-cost model that includes bulk purchasing and streamlined supply chains. It has shown resilience during economic downturns as consumers prioritize affordability.
Key Trends Impacting the Industry: Consumer spending is on the rise, driven by lower borrowing costs and the upcoming holiday season, while shoppers are increasingly seeking bargains, leading to a shift towards discount retailers. Additionally, omnichannel capabilities are enhancing customer reach, and margin discipline is crucial for maintaining profitability amid intense competition.
Zacks Industry Rank and Performance: The Retail – Discount Stores industry ranks #26 in the Zacks Industry Rank, indicating positive near-term prospects with a growing earnings outlook. However, it has underperformed compared to the broader Retail – Wholesale sector and the S&P 500 over the past year.
Highlighted Retail Discount Store Stocks: Key companies such as TJX Companies, Dollar General, Dollar Tree, and Costco are noted for their strong market positions and growth potential, with each showing positive sales and earnings projections for the current financial year.
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Analyst Views on TJX
Wall Street analysts forecast TJX stock price to rise
18 Analyst Rating
17 Buy
1 Hold
0 Sell
Strong Buy
Current: 150.260
Low
150.00
Averages
169.81
High
193.00
Current: 150.260
Low
150.00
Averages
169.81
High
193.00
About TJX
The TJX Companies, Inc. is an off-price apparel and home fashions retailer in the United States (U.S.) and worldwide. The Company's segments include Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International, including Europe and Australia. The TJ Maxx and Marshalls chains sell family apparel, including footwear and accessories, home fashions, including home basics, decorative accessories, and giftware and other merchandise. The HomeGoods segment operates HomeGoods and Homesense chains. HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop, and cookware, as well as expanded pet and gourmet food departments. The TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada, offering a range of home decor, furniture, and seasonal home merchandise. The TJX International segment operates the TK Maxx and Homesense chains in Europe and the TK Maxx chain in Australia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Consumer Stocks Plummet Amid War Fears, Cramer Analyzes
- Market Sentiment Decline: Consumer stocks are facing significant sell-offs due to escalating fears surrounding the Iran war, with the SPDR S&P Retail ETF dropping approximately 3.6% on Monday, indicating investor concerns about household spending amidst high oil prices.
- TJX Underperformance: Despite TJX's historical resilience in tough economic times, its stock fell nearly 3%, reflecting pessimism about its future performance, even though it typically excels in managing excess inventory.
- Five Below's Disastrous Performance: The stock of Five Below, which focuses entirely on discretionary products, plummeted around 6.7%, highlighting the impact of tightening consumer spending despite the absence of negative earnings reports.
- Ross Stores' Anomalous Results: Ross Stores, despite reporting strong earnings, saw its stock decline by approximately 5%, making it one of the worst performers in the S&P 500, indicating a lack of market confidence in its future prospects.
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Retail Stocks Punished Amid Economic Weakness
- Consumer Confidence Decline: Rising gasoline prices above $4 per gallon are suppressing consumer spending, leading to sell-offs in traditionally strong retail stocks like TJX and Dollar General, reflecting a pessimistic market sentiment regarding economic prospects.
- Retail ETF Underperformance: The SPDR S&P Retail ETF fell approximately 3.6% on Monday, indicating that even discount retailers and off-price chains have failed to attract investors during tough economic times, exacerbating concerns over consumer goods.
- TJX Stock Decline: Despite typically excelling in downturns, TJX's stock dropped nearly 3%, with Cramer noting that his portfolio holds the stock and is considering buying more after its recent decline, demonstrating confidence in its long-term potential.
- Market Sentiment Impact: Cramer cautioned investors against trading based solely on headlines, arguing that the current market's emotional reaction to war and oil prices may lead to poor investment decisions, particularly in selecting retail stocks.
See More
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- Tech Stocks Surge: Stocks like Lumentum, Coherent, Corning, Western Digital, Micron, Seagate, Qualcomm, and Qnity Electronics have all risen over 5%, indicating strong market confidence in the tech sector, which may drive overall market gains further.
- Energy Stocks Rise: Energy stocks increased alongside oil prices after President Trump indicated challenges to the Iran ceasefire, reflecting market sensitivity to energy price fluctuations that could impact consumer spending and overall economic growth.
- Consumer Confidence Dips: Consumer-related stocks, including TJX Companies and Nike, faced declines, highlighting investor anxiety over the potential economic pressures from rising energy prices, which could dampen consumer spending.
- CPI Report Expectations: The upcoming Consumer Price Index report is expected to show a significant month-over-month increase, with economists predicting a 0.59% rise from March, which may prompt government actions to alleviate economic burdens on consumers, further influencing market sentiment.
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- Earnings Release Schedule: TJX Companies plans to announce its Q1 Fiscal 2027 sales and earnings results on May 20, 2026, at 9:30 a.m. ET, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: At 11:00 a.m. ET on the same day, CEO Ernie Herrman will hold a conference call to discuss the earnings report, operations, and business trends, aiming to bolster investor confidence in the company's future direction.
- Real-Time Webcast: The call will be available via a live webcast on TJX.com, ensuring that the public can access the latest company updates, which underscores the company's dedication to information sharing.
- Company Overview: As a Fortune 100 company and leading off-price retailer, TJX offers brand-name merchandise at prices 20% to 60% below full-price retailers, operating over 5,200 stores globally, showcasing its strong market competitiveness and brand influence.
See More
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- American Express Dividend Increase: American Express announced a 16% increase in its quarterly dividend to $0.95 per share, yielding 1.2%, while achieving an 11% revenue growth amidst economic pressures, showcasing its stability and growth potential.
- TJX Companies Strong Performance: TJX raised its dividend by 13%, marking the 29th increase in 30 years, with a solid same-store sales growth rate of 5%, demonstrating resilience and sustained growth in a challenging retail environment.
- Costco's Steady Growth: Costco increased its quarterly dividend from $1.30 to $1.47, and while its yield is 0.6%, its history of special dividends enhances investor confidence, indicating strong long-term returns potential.
- Importance of Dividend Growth: These three companies convey their financial health and long-term investment value through significant dividend increases, particularly as stable dividend income becomes a crucial consideration for investors facing inflationary pressures.
See More
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- E-Commerce Sales Surge: Amazon's e-commerce unit sales grew 15% year-over-year in Q1, marking the highest growth since the pandemic's end, indicating a recovery in consumer spending potentially linked to tax relief.
- Walmart's Earnings Outlook: Walmart is expected to report a 5% year-over-year sales increase to $172 billion on May 21, with nearly all growth coming from existing stores, and earnings projected to rise 8% to $0.66 per share, reflecting strong performance amid improving consumer spending.
- E-Commerce Competitive Edge: Walmart's e-commerce sales surged 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, suggesting that Walmart's rapid growth in e-commerce could pose a competitive threat to Amazon.
- TJX Companies' Steady Growth: TJX has reported sales growth in 19 of the last 20 years, with Q1 sales expected to rise 6.5% to $13.9 billion, and management noted that the availability of quality inventory remains strong, which is crucial for attracting customers.
See More
Consumer Stocks Plummet Amid War Fears, Cramer Analyzes
- Market Sentiment Decline: Consumer stocks are facing significant sell-offs due to escalating fears surrounding the Iran war, with the SPDR S&P Retail ETF dropping approximately 3.6% on Monday, indicating investor concerns about household spending amidst high oil prices.
- TJX Underperformance: Despite TJX's historical resilience in tough economic times, its stock fell nearly 3%, reflecting pessimism about its future performance, even though it typically excels in managing excess inventory.
- Five Below's Disastrous Performance: The stock of Five Below, which focuses entirely on discretionary products, plummeted around 6.7%, highlighting the impact of tightening consumer spending despite the absence of negative earnings reports.
- Ross Stores' Anomalous Results: Ross Stores, despite reporting strong earnings, saw its stock decline by approximately 5%, making it one of the worst performers in the S&P 500, indicating a lack of market confidence in its future prospects.
See More
Retail Stocks Punished Amid Economic Weakness
- Consumer Confidence Decline: Rising gasoline prices above $4 per gallon are suppressing consumer spending, leading to sell-offs in traditionally strong retail stocks like TJX and Dollar General, reflecting a pessimistic market sentiment regarding economic prospects.
- Retail ETF Underperformance: The SPDR S&P Retail ETF fell approximately 3.6% on Monday, indicating that even discount retailers and off-price chains have failed to attract investors during tough economic times, exacerbating concerns over consumer goods.
- TJX Stock Decline: Despite typically excelling in downturns, TJX's stock dropped nearly 3%, with Cramer noting that his portfolio holds the stock and is considering buying more after its recent decline, demonstrating confidence in its long-term potential.
- Market Sentiment Impact: Cramer cautioned investors against trading based solely on headlines, arguing that the current market's emotional reaction to war and oil prices may lead to poor investment decisions, particularly in selecting retail stocks.
See More
Markets Hit New Highs as Tech Stocks Surge
- Tech Stocks Surge: Stocks like Lumentum, Coherent, Corning, Western Digital, Micron, Seagate, Qualcomm, and Qnity Electronics have all risen over 5%, indicating strong market confidence in the tech sector, which may drive overall market gains further.
- Energy Stocks Rise: Energy stocks increased alongside oil prices after President Trump indicated challenges to the Iran ceasefire, reflecting market sensitivity to energy price fluctuations that could impact consumer spending and overall economic growth.
- Consumer Confidence Dips: Consumer-related stocks, including TJX Companies and Nike, faced declines, highlighting investor anxiety over the potential economic pressures from rising energy prices, which could dampen consumer spending.
- CPI Report Expectations: The upcoming Consumer Price Index report is expected to show a significant month-over-month increase, with economists predicting a 0.59% rise from March, which may prompt government actions to alleviate economic burdens on consumers, further influencing market sentiment.
See More
TJX Companies to Release Q1 Fiscal 2027 Earnings on May 20, 2026
- Earnings Release Schedule: TJX Companies plans to announce its Q1 Fiscal 2027 sales and earnings results on May 20, 2026, at 9:30 a.m. ET, reflecting the company's commitment to transparency and investor communication.
- Conference Call Details: At 11:00 a.m. ET on the same day, CEO Ernie Herrman will hold a conference call to discuss the earnings report, operations, and business trends, aiming to bolster investor confidence in the company's future direction.
- Real-Time Webcast: The call will be available via a live webcast on TJX.com, ensuring that the public can access the latest company updates, which underscores the company's dedication to information sharing.
- Company Overview: As a Fortune 100 company and leading off-price retailer, TJX offers brand-name merchandise at prices 20% to 60% below full-price retailers, operating over 5,200 stores globally, showcasing its strong market competitiveness and brand influence.
See More
Three Major U.S. Companies Announce Dividend Increases
- American Express Dividend Increase: American Express announced a 16% increase in its quarterly dividend to $0.95 per share, yielding 1.2%, while achieving an 11% revenue growth amidst economic pressures, showcasing its stability and growth potential.
- TJX Companies Strong Performance: TJX raised its dividend by 13%, marking the 29th increase in 30 years, with a solid same-store sales growth rate of 5%, demonstrating resilience and sustained growth in a challenging retail environment.
- Costco's Steady Growth: Costco increased its quarterly dividend from $1.30 to $1.47, and while its yield is 0.6%, its history of special dividends enhances investor confidence, indicating strong long-term returns potential.
- Importance of Dividend Growth: These three companies convey their financial health and long-term investment value through significant dividend increases, particularly as stable dividend income becomes a crucial consideration for investors facing inflationary pressures.
See More
Amazon Sees Strong E-Commerce Growth Amid Consumer Spending Recovery
- E-Commerce Sales Surge: Amazon's e-commerce unit sales grew 15% year-over-year in Q1, marking the highest growth since the pandemic's end, indicating a recovery in consumer spending potentially linked to tax relief.
- Walmart's Earnings Outlook: Walmart is expected to report a 5% year-over-year sales increase to $172 billion on May 21, with nearly all growth coming from existing stores, and earnings projected to rise 8% to $0.66 per share, reflecting strong performance amid improving consumer spending.
- E-Commerce Competitive Edge: Walmart's e-commerce sales surged 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, suggesting that Walmart's rapid growth in e-commerce could pose a competitive threat to Amazon.
- TJX Companies' Steady Growth: TJX has reported sales growth in 19 of the last 20 years, with Q1 sales expected to rise 6.5% to $13.9 billion, and management noted that the availability of quality inventory remains strong, which is crucial for attracting customers.
See More
