TJX Companies shares stayed flat despite strong quarterly results, with revenue up 8.5% to $17.7 billion and EPS exceeding expectations at $1.58. Same-store sales rose 5%, beating estimates. The off-price retailer’s model of offering discounted high-quality brands continues to attract value-seeking customers, with annual sales surpassing $60 billion. Guidance for the quarter and full year was conservative but in line with the company’s history of overdelivering on projections.

TJX’s EPS results were impressive, with adjusted EPS at $1.43 after excluding one-time benefits, driven by gross margin expansion and lower expenses. Pre-tax income increased by 26.5% year-over-year. As a result, analysts reiterated a 1 rating and raised the price target to $180 from $160. Guidance for the first quarter of 2027 includes lower-than-expected sales, same-store sales growth, profit margins, and EPS, reflecting a cautious outlook for the period.

Despite conservative guidance, TJX’s strong quarterly results and business model make it well-suited for the current economic environment. Offering a treasure hunt shopping experience with compelling prices, TJX is a favorite among inflation-weary customers. Competitors like Ross Stores and Burlington Stores are also seeing success in the off-price retail sector. Analysts remain bullish on TJX’s long-term prospects, with a positive outlook for continued growth in sales and profitability.

Read more at CNBC: We’re boosting our price target on TJX after another knockout quarter