Why TJX (TJX) Stock Is Up Today

What Happened:

Shares of off-price retail company TJX (NYSE:TJX) jumped 6.4% in the pre-market session after the company reported a "beat and raise" quarter. TJX beat analysts' revenue, gross margin, and EPS expectations. Notably, same-store sales grew 4% year on year, mostly driven by customer transactions. Despite recent worries about the strength of the consumer, management provided positive comments, adding, "The third quarter is off to a strong start. We see excellent buying opportunities in the marketplace and are strongly positioned to ship fresh and compelling merchandise to our stores and online throughout the fall and holiday selling seasons." As a result, it raised its full-year earnings guidance. Overall, this was a solid quarter.

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What is the market telling us:

TJX’s shares are not very volatile than the market average and over the last year have had no moves greater than 5%. In context of that, today’s move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business. 

The biggest move we wrote about over the last year was 3 months ago, when the stock gained 6.9% on the news that the company reported first quarter results that beat analysts' revenue and EPS expectations due to an increase in customer transactions. Margins also improved, with gross margin increasing to 30%, up from 28.9% in the same quarter last year, due to lower freight costs and favorable mark on. TJX also raised its full-year earnings guidance, but the company's projections slightly missed Wall Street's estimates. Overall, the results were decent.

TJX is up 28.9% since the beginning of the year, and at $120.18 per share, has set a new 52-week high. Investors who bought $1,000 worth of TJX’s shares 5 years ago would now be looking at an investment worth $2,246.

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