The TJX Companies, Inc. (TJX)

MikeMiloserdoff (53.04) Submitted: 2/11/07 4:36 AM : Start Price: $28.51 TJX Score: 33.93

TJ Maxx also owns Marshalls. For a Christmas gift last year, I bought a Perry Ellis Portfolio men's all-leather belt with an tagged-MSRP of $34.95 for a mere $9.99 at Marshalls (non-sale price). Need I say more? With steady earnings in a mainstream industry. No waiting for discounts at the next Macy's 18 hour sale...

The customer base of this industry sector can be equated to vultures in the animal world. They are happy with the road-kill leftovers, they still get nourished, but their nourishment has to get picked off of the pavement, and not all people are happy with leftovers for their apparel selection. TJ Maxx designer labels (POLO, Ralph Lauren, etc.) seem a bit overpriced compared to the other apparel they carry, but they never quit carrying these designer labels.

I have casually followed TJX stock for three or more years, and it seems each quarter, the company is content with their earnings, and the stock seems very stable. The stock would be a good long-term holding with a characteristic of steady, slow growth. With a price-earnings ratio of less than 20, their stock is as much a value as the goods they sell in their stores.

Report this Post Replies: 0 | Reply