TJX (TJX Companies, Inc. (The)): Themes, ETFs, and Basket Ideas
TJX is the ticker for TJX Companies, Inc. (The). This page covers what the company does, where it's heading, its approximate earnings and valuation, key competitors, the themes it belongs to, the ETFs that hold it, and similar stocks worth looking at.
What does TJX Companies, Inc. (The) do?
TJX Companies operates the largest off-price retail business in the world. Brands include T.J. Maxx, Marshalls, HomeGoods, HomeSense, Sierra (off-price outdoor), and TK Maxx internationally. The model is opportunistic buying: TJX merchandise teams buy branded and designer apparel and home goods at deep discounts from manufacturers, brands, and other retailers (overstock, cancellations, end-of-season). These products are then sold at 20-60% below department store prices.
The TJX model is structurally counter-cyclical: when consumers are squeezed, they trade down to off-price; when other retailers struggle, they sell inventory to TJX cheaply. This makes TJX one of the few retailers that often performs well in recessions. The company has approximately 5,000 stores globally. Founded in 1956, headquartered in Framingham, Massachusetts. Ernie Herrman has been CEO since 2016.
Where is TJX Companies, Inc. (The) heading?
1. Consumer trade-down driving traffic.
Persistent inflation and middle-income consumer pressure has driven steady trade-down from full-price retail to off-price. TJX has benefited disproportionately because of its brand recognition (T.J. Maxx and Marshalls are top-of-mind for off-price). Traffic and same-store sales growth have been strong.
2. International expansion.
TK Maxx (the international version of T.J. Maxx) operates across the UK, Europe, and Australia. International store count has grown steadily and same-store sales internationally have outpaced US. The runway for international growth is meaningful.
3. HomeGoods and home category strength.
HomeGoods and HomeSense have been particularly strong, benefiting from the same trade-down dynamic in home furnishings as in apparel.
4. Sourcing advantage.
TJX's relationships with thousands of vendors and its merchandising scale create a sourcing advantage that's hard to replicate. The buying organization is one of the largest in retail.
Risks worth tracking: If consumer pressure eases significantly, the off-price trade-down dynamic moderates. Inventory sourcing depends on full-price retail health; if traditional retail recovers fully, less excess inventory flows to off-price.
Earnings and valuation (approximate, early 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see TJX Companies, Inc. (The)'s investor relations page or your broker.
- Revenue (TTM): ~$58 billion
- Operating margin: ~12%
- Net income (TTM): ~$5 billion
- EPS (TTM): ~$4.30
- P/E (TTM): ~27x
- Price to sales: ~2.5x
- Dividend yield: ~1.3%, with consistent growth
- Free cash flow: ~$5 billion annually
- Same-store sales growth: Mid-single digits and accelerating
TJX trades at a premium to traditional department stores and apparel retailers, reflecting the counter-cyclical model durability and consistent execution. The valuation is supported by sustained same-store sales growth even during periods of consumer pressure.
Themes TJX belongs to
These are the investment theses TJX naturally fits into. Each links to a full theme guide listing every other stock that belongs and the ETFs commonly used as a passive proxy.
ETFs that hold TJX
If you want TJX exposure as part of a larger bundle rather than directly, these ETFs hold it meaningfully. Weights are approximate and refresh quarterly.
| ETF | Name | % in TJX | Expense ratio | |
|---|---|---|---|---|
| XLY | Consumer Discretionary Select Sector SPDR Fund | ~3.5% | 0.09% |
TJX's competitors
Off-price apparel and home
Ross Stores is the closest direct competitor in off-price apparel and home, particularly in the western and southern US. Burlington Stores is the third major off-price apparel competitor. The three (TJX, Ross, Burlington) dominate off-price retail and have grown share consistently.
Traditional department stores
Macy's, Kohl's, Nordstrom (especially Nordstrom Rack), and other department stores have lost share to off-price over the past decade. They remain competition for branded apparel but at substantially higher price points.
Online and direct-to-consumer
Amazon (broad selection at competitive prices), direct-from-brand e-commerce, and various discount platforms (Shein for low-price, Temu for ultra-low-price) compete for some of the same value-seeking consumer. TJX's in-store treasure-hunt experience is differentiating.
Similar stocks
Other names that show up alongside TJX in the same themes. Worth a look if you're thinking about diversification within a single thesis rather than concentration on one ticker.
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Using TJX in a Walnut basket
The most useful question to ask about a single stock is rarely “will it go up?”. It's “does this fit a thesis I actually believe in, and how do I size it alongside other stocks that fit the same thesis?” That's what Walnut is built for.
Open the AI assistant on Walnut and describe a thesis (for example: “the AI infrastructure buildout”, “dividend growth large-caps”, “global semiconductors”) where TJX would naturally fit. The AI proposes 5 to 6 constituents with target weights, you review, and you can fund the basket through your broker once you're ready.
Build a basket around TJX with Walnut
Use TJX Companies, Inc. (The) as one constituent in a thematic basket Walnut's AI helps you assemble. Describe a thesis you believe in, the AI proposes the holdings and weights, and you approve before any broker order.
FAQ
What is TJX's ticker symbol?
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TJX, listed on NYSE. Officially The TJX Companies, Inc. Founded 1956, headquartered in Framingham, Massachusetts. Trades during US market hours. Operates T.J. Maxx, Marshalls, HomeGoods, HomeSense, Sierra, and TK Maxx internationally.
Who are TJX's competitors?
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In off-price apparel and home: Ross Stores (the closest direct competitor) and Burlington Stores. In broader retail: traditional department stores like Macy's, Kohl's, and Nordstrom (especially Nordstrom Rack). Online: Amazon, direct-to-consumer brand e-commerce, Shein, and Temu compete for some value-seeking shoppers.
Why does TJX do well in recessions?
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The off-price model is structurally counter-cyclical. When consumers are squeezed, they trade down from full-price retail to off-price for the same brands. Simultaneously, when other retailers struggle, they sell excess inventory to TJX cheaply. Both effects benefit TJX. The company has historically gained share during recessions and slower-growth periods.
What is TJX's P/E ratio?
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Approximately 27x trailing twelve months as of early 2026. Premium to the S&P 500 average (~22x) reflecting the counter-cyclical model durability, consistent same-store sales growth, and dividend growth track record.
What does TJX do?
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TJX operates the largest off-price retail business in the world. Brands include T.J. Maxx, Marshalls, HomeGoods, HomeSense, Sierra (outdoor), and TK Maxx (international). Merchandise teams buy branded and designer apparel and home goods at deep discounts and sell them 20-60% below department store prices. Approximately 5,000 stores globally.
Who owns the most TJX stock?
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Major institutional holders include Vanguard (~9%), BlackRock (~7%), and State Street (~4%). Insider ownership is low. TJX is widely held in dividend-growth and quality-compounder funds.
Which ETFs have the most TJX exposure?
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XLY (Consumer Discretionary Select Sector SPDR) holds TJX at ~3.5%. VCR (Vanguard Consumer Discretionary) holds it at smaller weight. VOO holds TJX at ~0.4%. SCHD holds TJX historically when it screens favorably on dividend metrics. Off-price retail is concentrated in just three major US public players (TJX, Ross, Burlington), so retail-specific ETFs hold TJX at meaningful weights.
Which thematic baskets typically include TJX?
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Two themes on Walnut. Consumer discretionary (the largest off-price retailer worldwide; counter-cyclical model) and Dividend growth (consistent dividend growth through cycles). TJX is often paired with Costco in quality-compounder consumer baskets.
How much of XLY is TJX?
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Approximately 3.5% as of early 2026. TJX is typically a top-10 XLY holding but heavily outweighted by Amazon (~22%) and Tesla (~14.5%) at the top of the fund. In VOO, TJX is at ~0.4% reflecting broader index weight. Investors who want concentrated value-retail exposure typically build a Walnut basket rather than rely on XLY.
Is TJX in the S&P 500?
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Yes. TJX has been an S&P 500 constituent for many years. It is typically a top-50 S&P 500 holding by market cap, supported by consistent earnings growth and the multi-decade dividend growth track record.
What is TJX's market cap?
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Approximately $140 billion as of early 2026. TJX has appreciated steadily over decades, becoming one of the largest US specialty retail companies by market cap. The market cap reflects the counter-cyclical model premium and consistent execution through multiple consumer cycles.
Does TJX pay a dividend?
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Yes. TJX yields approximately 1.3% as of early 2026, paid quarterly. The dividend has been raised consistently for over 25 years. TJX also conducts meaningful share buybacks; total capital return is substantial. The combination of yield and growth makes TJX a frequent inclusion in dividend-growth funds and SCHD.
Is TJX a defensive stock?
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Relatively yes within consumer discretionary. The off-price model gains share when full-price retail struggles, creating counter-cyclical exposure that traditional retailers lack. TJX is not immune to consumer pressure but has historically been the most resilient large-cap apparel retailer through downturns. Many quality-focused investors hold TJX as the consumer-cyclical exposure in defensive portfolios.
Should I own TJX directly or through XLY?
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Different exposures. Direct TJX ownership gives concentrated off-price retail exposure with full leverage to the counter-cyclical thesis. XLY includes TJX at ~3.5% but is dominated by Amazon and Tesla. Many Walnut users hold TJX directly in consumer-discretionary baskets rather than through XLY because XLY's top weights don't match the value-retail thesis.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with TJX Companies, Inc. (The)'s investor relations page or your broker before making investment decisions.