5 Best Department Store and Discount Retailer Stocks to Buy

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

Number of Hedge Fund Holders: 69

The TJX Companies, Inc. (NYSE:TJX) is an apparel retail company. It is based in Framingham, Massachusetts.

An Outperform rating was reiterated on The TJX Companies, Inc. (NYSE:TJX) shares on February 23 by Mark Altschwager at Baird.

With 11 Buy ratings, analysts on Wall Street see The TJX Companies, Inc. (NYSE:TJX) as a Strong Buy. They have placed an average price target of $90.73 on the shares, which were trading at $76.84 on April 26. This gives the stock an upside potential of $18.08%.

In total, 69 hedge funds were long The TJX Companies, Inc. (NYSE:TJX) in the fourth quarter, with a total stake value of $2.6 billion.

Artisan Partners, an investment management company, mentioned The TJX Companies, Inc. (NYSE:TJX) in its fourth-quarter 2022 investor letter. Here’s what the firm said:

“Also, shares of The TJX Companies, Inc. (NYSE:TJX), an off-price retailer of apparel and home goods across North America, Europe and Australia, rose on strong Black Friday sales and market share gains as shoppers searched for deals in physical stores. The company showed that it is maintaining margins and beating earnings estimates on strong sales and by selectively raising prices. TJX’s business model is to sell brand name and designer merchandise in limited quantities at every day discounted prices in stores with flexible, low-cost layouts. Its strategy is to tap into shoppers’ psychological need to “treasure hunt,” as the company describes it, to find unique, branded items at deep discounts. TJX buyers opportunistically purchase merchandise from vendors at deep discounts to keep the cost of goods low for stores. As the largest off-price retailer, the company has used its channel power to its advantage in recent months to gain steep discounts on merchandise as other retailers struggle to clear their inventory. We appreciate the company’s inventory management and pricing  prowess. This holding is an example of our broad universe of companies that we consider for the portfolio and one that we believe is well-positioned for the current market environment.”

See also 10 Biggest Discount Store Companies in the World and 13 Best Consumer Staples Dividend Stocks To Buy.