7 Best Department Store Stocks to Buy Now

2. TJX Companies, Inc. (NYSE:TJX)

Number of Hedge Fund Holders: 63

The TJX Companies, Inc. (NYSE:TJX) operates in Marmaxx and HomeGoods, TJX International, and TJX Canada segments. Its stores offer an assortment of home decoration, apparel, decorative accessories, footwear, accessories, giftware, and much more. The company is especially directing fresh assortments to its stores and websites for the holiday shopping season, and is off to a good start with its fiscal Q4 2025 sales.

Increasing customer transactions resulted in growth in the company’s consolidated comparable sales. Its home and apparel categories also saw comparable sales growth in fiscal Q3 2025. Even after the holiday season, the company has plans to establish itself as a year-round gift destination by offering fresh merchandise in stores and online multiple times a week.

TJX Companies, Inc. (NYSE:TJX) is already well positioned as a one-stop shop for holiday gifts, offering merchandise for a variety of income demographics. Therefore, its increased focus on becoming the go-to gift destination all year around is anticipated to lend it a substantial market position.

The company’s expansion strategy also gives it a competitive advantage. It has more than 5,000 stores as of fiscal Q3 2025, and plans to open more than 1,200 stores in its current countries and retail banners. 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 the 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”.