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Here's How Much You'd Have If You Invested $1000 in TJX a Decade Ago
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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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in TJX (TJX - Free Report) 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 30, 2022, the company operated a total of 4,736 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 (60.7% of FY22 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 (18.5% of FY22 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 (9% of FY22 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (11.8% of FY22 Sales) through stores under the names of T.K. Maxx and HomeSense.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TJX ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $3,392.91, or a gain of 239.29%, as of November 2, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 170.11% and the price of gold went up -7.59% over the same time frame.
Analysts are forecasting more upside for TJX too.
Shares of The TJX Companies have outperformed the industry over the past three months. The company’s off-price business model, strategic store locations, impressive brands and fashion products, as well as supply-chain management have been working well. Additionally, The TJX Companies has been benefiting from its solid store and e-commerce growth efforts. The TJX Companies is optimistic about growing its global store base by at least another 1,500 stores in the current locations. Apart from this, the company has been witnessing improved pre-tax profit margin, with management raising its guidance for the same for fiscal 2023. The TJX Companies now expects fiscal 2023 adjusted pretax profit margin of 9.7-9.9%. However, escalated freight and wage expenses are concerns for the company. These costs are likely to remain high in fiscal 2023.
Shares have gained 9.69% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in TJX a Decade Ago
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.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in TJX (TJX - Free Report) 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 30, 2022, the company operated a total of 4,736 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 (60.7% of FY22 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 (18.5% of FY22 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 (9% of FY22 Sales) through stores under the names of Winners, Marshalls and HomeSense and in Europe, it operates through TJX International (11.8% of FY22 Sales) through stores under the names of T.K. Maxx and HomeSense.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in TJX ten years ago, you're likely feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in November 2012 would be worth $3,392.91, or a gain of 239.29%, as of November 2, 2022, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 170.11% and the price of gold went up -7.59% over the same time frame.
Analysts are forecasting more upside for TJX too.
Shares of The TJX Companies have outperformed the industry over the past three months. The company’s off-price business model, strategic store locations, impressive brands and fashion products, as well as supply-chain management have been working well. Additionally, The TJX Companies has been benefiting from its solid store and e-commerce growth efforts. The TJX Companies is optimistic about growing its global store base by at least another 1,500 stores in the current locations. Apart from this, the company has been witnessing improved pre-tax profit margin, with management raising its guidance for the same for fiscal 2023. The TJX Companies now expects fiscal 2023 adjusted pretax profit margin of 9.7-9.9%. However, escalated freight and wage expenses are concerns for the company. These costs are likely to remain high in fiscal 2023.
Shares have gained 9.69% over the past four weeks and there have been 1 higher earnings estimate revisions for fiscal 2022 compared to none lower. The consensus estimate has moved up as well.