10 Best Retail Stocks To Invest In

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

Number of Hedge Fund Holders: 63

TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashion retailer in the United States and worldwide. The company’s fiscal Q4 2025 is off to a solid start, with goods available across a wide range of brands. It is flowing fresh assortments to its store and online for the holiday shopping season and beyond.

The company’s consolidated comparable sales grew at the high end of its plans in fiscal Q3 2025, driven entirely by customer transactions. Its apparel and home categories also saw comparable sales increases in fiscal Q3 2025. The TJX Companies, Inc. (NYSE:TJX) has a meaningful advantage as consumers can shop its value-added items every day without having to wait for promotional days or sales. Despite that, it is well-positioned as a one-stop shop destination for holiday gifts, with its assortment appealing to a broad range of income demographics.

After the holiday season, the company plans to continue its focus on being a year-round gifting destination. It plans to offer fresh merchandise online and in its stores multiple times a week. The company has more than 5,000 stores as of fiscal Q3 2025, and continues to see the potential to open 1,200+ stores with its current retail banners in its current countries. The TJX Companies, Inc. (NYSE:TJX) has announced plans to expand its T.K. Maxx banner in Spain, with the first stores expected to open in early 2026 and long term. The company sees the potential to open more than 100 stores in Spain.

Madison Investors Fund stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its Q2 2024 investor letter:

“The TJX Companies, Inc. (NYSE:TJX), an off-price retailer, continues to do well. Its value-based retail stores are resonating with consumers given the backdrop of higher inflation, which led to strong revenue and profit growth in the most recent quarter.”