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: 155.450
Low
150.00
Averages
169.81
High
193.00
Current: 155.450
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.
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
Amazon, Walmart, and TJX Earnings Outlook
- Amazon E-commerce Growth: Amazon's Q1 e-commerce unit sales surged 15% year-over-year, marking the highest growth since the pandemic's end, indicating a rebound in consumer spending potentially linked to tax relief, thereby enhancing its market position in e-commerce.
- Walmart's E-commerce Surge: Walmart's e-commerce sales skyrocketed 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, with Q1 sales expected to grow 5% to $172 billion, showcasing its strong performance amid improving consumer spending trends.
- TJX's Consistent Growth: TJX has reported sales growth in 19 of the last 20 years, with comparable store sales rising 5% year-over-year in the latest fiscal quarter, and Q1 sales projected to increase 6.5% to $13.9 billion, reflecting its resilience and market appeal in a high-inflation environment.
- Future Growth Potential: TJX is expanding in Europe, Mexico, and the Middle East, while also adding new categories in its e-commerce channel, indicating significant growth potential in global markets and a positive outlook for future sales.
See More
Analysis of TJX Companies Stock Performance
- Strong Stock Performance: TJX Companies' stock price has surged 312.3% over the past decade, significantly outperforming the S&P 500's 239.4%, reflecting robust market performance and investor confidence.
- Sustained Sales Growth: Despite challenging economic conditions, TJX reported a 5% increase in same-store sales for fiscal 2026, following a 4% gain the previous year, with management projecting a 2% to 3% growth this year, indicating resilience in adverse environments.
- Significant Expansion Potential: The company added 129 new stores last year, bringing its total to 5,214, highlighting substantial domestic and international expansion opportunities that further solidify its market position.
- Attractive Valuation for Investors: Although TJX's price-to-earnings ratio stands at 32, higher than its historical median of 19, its ongoing growth potential makes it an appealing investment opportunity, particularly across various economic cycles.
See More
TJX Companies' Bright Future and Growth Prospects
- Outstanding Stock Performance: As of April 22, TJX Companies' stock has surged 312.3% over the past decade, significantly outperforming the S&P 500's 239.4%, indicating strong performance in the retail sector and investor confidence.
- Sustained Sales Growth: Despite economic challenges like high inflation, all divisions of TJX posted positive same-store sales, with a 5% increase in fiscal 2026 compared to 4% the previous year, and management projects a 2% to 3% increase this year, showcasing the company's resilience.
- Aggressive Expansion Plans: TJX added 129 new stores last year, bringing the total to 5,214, demonstrating the company's potential for domestic and international expansion, which further solidifies its market position.
- Attractive Valuation for Investors: Although TJX's P/E ratio stands at 32, slightly above the S&P 500's 31, its ongoing growth potential and market performance make it an attractive investment opportunity, reflecting market confidence in its future.
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
Amazon, Walmart, and TJX Earnings Outlook
- Amazon E-commerce Growth: Amazon's Q1 e-commerce unit sales surged 15% year-over-year, marking the highest growth since the pandemic's end, indicating a rebound in consumer spending potentially linked to tax relief, thereby enhancing its market position in e-commerce.
- Walmart's E-commerce Surge: Walmart's e-commerce sales skyrocketed 24% year-over-year in Q4, significantly outpacing Amazon's 8% increase, with Q1 sales expected to grow 5% to $172 billion, showcasing its strong performance amid improving consumer spending trends.
- TJX's Consistent Growth: TJX has reported sales growth in 19 of the last 20 years, with comparable store sales rising 5% year-over-year in the latest fiscal quarter, and Q1 sales projected to increase 6.5% to $13.9 billion, reflecting its resilience and market appeal in a high-inflation environment.
- Future Growth Potential: TJX is expanding in Europe, Mexico, and the Middle East, while also adding new categories in its e-commerce channel, indicating significant growth potential in global markets and a positive outlook for future sales.
See More
Analysis of TJX Companies Stock Performance
- Strong Stock Performance: TJX Companies' stock price has surged 312.3% over the past decade, significantly outperforming the S&P 500's 239.4%, reflecting robust market performance and investor confidence.
- Sustained Sales Growth: Despite challenging economic conditions, TJX reported a 5% increase in same-store sales for fiscal 2026, following a 4% gain the previous year, with management projecting a 2% to 3% growth this year, indicating resilience in adverse environments.
- Significant Expansion Potential: The company added 129 new stores last year, bringing its total to 5,214, highlighting substantial domestic and international expansion opportunities that further solidify its market position.
- Attractive Valuation for Investors: Although TJX's price-to-earnings ratio stands at 32, higher than its historical median of 19, its ongoing growth potential makes it an appealing investment opportunity, particularly across various economic cycles.
See More
TJX Companies' Bright Future and Growth Prospects
- Outstanding Stock Performance: As of April 22, TJX Companies' stock has surged 312.3% over the past decade, significantly outperforming the S&P 500's 239.4%, indicating strong performance in the retail sector and investor confidence.
- Sustained Sales Growth: Despite economic challenges like high inflation, all divisions of TJX posted positive same-store sales, with a 5% increase in fiscal 2026 compared to 4% the previous year, and management projects a 2% to 3% increase this year, showcasing the company's resilience.
- Aggressive Expansion Plans: TJX added 129 new stores last year, bringing the total to 5,214, demonstrating the company's potential for domestic and international expansion, which further solidifies its market position.
- Attractive Valuation for Investors: Although TJX's P/E ratio stands at 32, slightly above the S&P 500's 31, its ongoing growth potential and market performance make it an attractive investment opportunity, reflecting market confidence in its future.
See More
