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: 150.750
Low
150.00
Averages
169.81
High
193.00
Current: 150.750
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 Announce Q4 and FY 2026 Results
- Earnings Announcement Schedule: TJX Companies plans to release its fourth quarter and full year Fiscal 2026 sales and earnings results on February 25, 2026, at 9:30 a.m. ET, reflecting the company's commitment to transparency and investor communication.
- Executive Conference Call: At 11:00 a.m. ET on the same day, CEO Ernie Herrman will hold a conference call to discuss the results and operational trends, which is expected to provide investors with valuable insights into the company's performance and future outlook.
- 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 in real-time, thereby enhancing engagement with investors.
- Company Background Information: As a leading off-price retailer with over 5,100 stores, TJX offers products at prices 20% to 60% below full-price retailers, showcasing its competitive advantage and value proposition in the market.
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- ETF Investment Opportunities: Investors can gain exposure to these sectors through the Vanguard Information Technology ETF and Vanguard Consumer Discretionary ETF, which heavily feature stocks like Nvidia, Apple, and Microsoft, as well as Amazon, Tesla, and Home Depot, reflecting a strong focus on tech and consumer goods.
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- Stock Performance Analysis: The senator's two stock sales were categorized as partial sales, suggesting he may still hold shares in those companies, while Lowe's and TJX stocks have risen by 10.8% and 22.8% respectively over the past year, potentially prompting him to take profits.
- Trading History Review: Hickenlooper has been active in trading since taking office in 2021, with the recent transactions marking his first purchases since September 2025, reflecting his sensitivity to market dynamics and adjustments in investment strategy.
- Market Monitoring Recommendation: Investors should continue to monitor Hickenlooper's trading activities, particularly in light of his trading performance over the past year and prevailing market trends, as this may provide critical insights for investment decisions.
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- Consumer Spending Pressure: Consumers are feeling the strain from high prices and an uncertain labor market, impacting many retailers' sales, although both TJX and Walmart reported positive same-store sales growth of 5% and 4.5%, respectively.
- TJX's Competitive Edge: By selling goods at 20% to 60% below full-price retailers, TJX leverages its strategy of purchasing excess inventory from manufacturers, enhancing its market appeal during economic downturns and attracting value-seeking consumers.
- Walmart's Steady Growth: Walmart maintains its competitive edge in the retail market through ongoing technology investments and cost control, with its U.S. segment achieving a 4.5% increase in same-store sales, driven by higher traffic and spending.
- Investment Choice Analysis: While Walmart's stock trades at a high P/E ratio of 44, significantly above its 10-year median of 29, TJX's impressive 145.7% ten-year return suggests a more attractive valuation, making it the recommended investment choice between the two.
See More
TJX Companies to Announce Q4 and FY 2026 Results
- Earnings Announcement Schedule: TJX Companies plans to release its fourth quarter and full year Fiscal 2026 sales and earnings results on February 25, 2026, at 9:30 a.m. ET, reflecting the company's commitment to transparency and investor communication.
- Executive Conference Call: At 11:00 a.m. ET on the same day, CEO Ernie Herrman will hold a conference call to discuss the results and operational trends, which is expected to provide investors with valuable insights into the company's performance and future outlook.
- 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 in real-time, thereby enhancing engagement with investors.
- Company Background Information: As a leading off-price retailer with over 5,100 stores, TJX offers products at prices 20% to 60% below full-price retailers, showcasing its competitive advantage and value proposition in the market.
See More
Stock Market Plummets as AI Disruption Trade Intensifies
- Market Decline: The stock market experienced a significant drop on Thursday, with the S&P 500 falling below its 50-day moving average, indicating a notable deterioration in market sentiment that could lead to decreased investor confidence and increased selling pressure.
- Intensifying AI Trade: As the AI disruption trade intensifies, there is a growing focus on related tech stocks, which, despite potential short-term volatility, are still viewed favorably for their long-term potential, possibly attracting more capital inflows.
- Earnings Reports Released: Applied Materials and Arista Networks reported their earnings after hours, and the market's reaction to their performance will significantly impact investor confidence in tech stocks, especially in the current market environment.
- Investor Strategy Reevaluation: In light of increasing market volatility, investors may need to reassess their investment strategies to navigate potential risks and opportunities, particularly in the AI sector.
See More
Wall Street Analysts Forecast 18% Rise for S&P 500
- S&P 500 Forecast: Wall Street analysts predict an 18% increase in the S&P 500 to 8,200 over the next year, reflecting optimistic market sentiment about economic recovery, which may attract more investors into the market.
- Sector Performance: The information technology and consumer discretionary sectors are expected to grow by 33% and 22%, respectively, indicating that these industries will be focal points for investors, particularly through exposure via Vanguard ETFs.
- Vanguard Tech ETF Performance: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, equivalent to an annual growth of 24%, showcasing its strong performance in the tech sector, despite underperforming during market corrections.
- Concentration Risk Management: The top three stocks in the Vanguard Information Technology and Consumer Discretionary ETFs account for 44% and 43% of their performance, respectively, prompting investors to consider diversifying their portfolios to mitigate concentration risk and enhance resilience.
See More
Wall Street Optimistic on Tech and Consumer Sectors
- Sector Outlook: Wall Street analysts forecast that the information technology and consumer discretionary sectors will outperform the S&P 500 over the next year, with expected gains of 33% and 22% respectively, indicating growing investor confidence in these areas.
- ETF Investment Opportunities: Investors can gain exposure to these sectors through the Vanguard Information Technology ETF and Vanguard Consumer Discretionary ETF, which heavily feature stocks like Nvidia, Apple, and Microsoft, as well as Amazon, Tesla, and Home Depot, reflecting a strong focus on tech and consumer goods.
- Long-Term Return Potential: The Vanguard Information Technology ETF achieved a total return of 776% over the past decade, averaging 24% annually, while the Consumer Discretionary ETF delivered a total return of 311%, averaging 15% annually, highlighting the attractiveness of these sectors for long-term investment.
- Risk and Diversification Strategy: Despite underperformance during market corrections, investors should consider diversifying their portfolios by purchasing index funds tracking financials, industrials, or utilities to mitigate risks associated with economic fluctuations.
See More
Senator Hickenlooper's Significant Stock Trades to Start 2026
- Trading Activity Overview: Senator John Hickenlooper of Colorado disclosed four six-figure stock transactions at the start of 2026, indicating his active presence in the market, which may influence investor interest in his future trades.
- Stock Performance Analysis: The senator's two stock sales were categorized as partial sales, suggesting he may still hold shares in those companies, while Lowe's and TJX stocks have risen by 10.8% and 22.8% respectively over the past year, potentially prompting him to take profits.
- Trading History Review: Hickenlooper has been active in trading since taking office in 2021, with the recent transactions marking his first purchases since September 2025, reflecting his sensitivity to market dynamics and adjustments in investment strategy.
- Market Monitoring Recommendation: Investors should continue to monitor Hickenlooper's trading activities, particularly in light of his trading performance over the past year and prevailing market trends, as this may provide critical insights for investment decisions.
See More
Retail Performance Analysis: TJX vs Walmart
- Consumer Spending Pressure: Consumers are feeling the strain from high prices and an uncertain labor market, impacting many retailers' sales, although both TJX and Walmart reported positive same-store sales growth of 5% and 4.5%, respectively.
- TJX's Competitive Edge: By selling goods at 20% to 60% below full-price retailers, TJX leverages its strategy of purchasing excess inventory from manufacturers, enhancing its market appeal during economic downturns and attracting value-seeking consumers.
- Walmart's Steady Growth: Walmart maintains its competitive edge in the retail market through ongoing technology investments and cost control, with its U.S. segment achieving a 4.5% increase in same-store sales, driven by higher traffic and spending.
- Investment Choice Analysis: While Walmart's stock trades at a high P/E ratio of 44, significantly above its 10-year median of 29, TJX's impressive 145.7% ten-year return suggests a more attractive valuation, making it the recommended investment choice between the two.
See More
