TJX Companies Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$75.00 | Ybxlb | Lqmjljhd |
TJX's Leading Position in Off-Price Should Serve It Well Even as Economic Conditions Change
Business Strategy and Outlook
Despite inflation, freight and labor challenges, and an unsettled economy, we believe TJX and the rest of the off-price sector are better suited than most retailers, with potential for improved merchandise availability as supply chain dislocations and shifting spending patterns upset full-price stores’ merchandise orders. We still believe TJX and its peers benefit from durable advantages over full-price apparel and home décor sellers, with strong brands, store experiences, and scale working to keep returns on invested capital high (nearly 30% average over the next decade).