10 Best Discount Store Stocks to Invest In

3. The TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 74

TJX Companies, Inc. (NYSE:TJX) operates in the Marmaxx and HomeGoods, TJX International, and TJX Canada segments. Its stores offer an assortment of value home decorations, apparel, decorative accessories, footwear, accessories, giftware, and more.

The company’s overall sales surpassed $56 billion in fiscal Q4 2025, while full-year comparable store sales grew by 4%. The TJX Companies, Inc. (NYSE:TJX) attained a significant increase in profitability, along with a double-digit increase in earnings per share (EPS). In addition, the company’s net sales grew to $16.4 billion, a 5% increase versus last year’s adjusted sales. A 5% growth in its fiscal Q4 2025 consolidated comps sales also exceeded the company’s expectations. This growth was attributed to an increase in customer transactions.

The TJX Companies, Inc. (NYSE:TJX) opened its 5,000th store in the quarter, marking another significant milestone for the company. In fiscal 2025, it returned $4.1 billion to shareholders through its buyback and dividend programs. The company ranks third on our list of the 10 best discount store stocks to invest in.

Bretton Fund stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q4 2024 investor letter:

“Pre-pandemic, The TJX Companies, Inc. (NYSE:TJX) and Ross were usually in lockstep operationally and performance-wise. The main difference is TJX is much larger and has more divisions: TJ Maxx has higher-end goods; Marshalls has lower price points and is very similar to Ross; HomeGoods and Homesense offer furniture and household goods. But as inflation spiked up, TJX was better able to push through price increases, helped in part due to its relatively higher-income shoppers being less sensitive to inflation. TJX’s earnings growth and share price have outperformed Ross the past few years, but we expect that to converge in the near term. TJX’s and Ross’s earnings increased an estimated 9% and 11%, respectively, and their stocks returned 31% and 10%.”