12 Best Retail Stocks to Buy According to Analysts

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

On February 23, The TJX Companies, Inc. (NYSE:TJX) saw JPMorgan raise its price target to $173 from $154 while maintaining an Overweight rating as part of an earnings preview across the retail sector.

During the third quarter of fiscal 2026, The TJX Companies, Inc. (NYSE:TJX) delivered strong financial performance, with comparable sales increasing 5%, driven by higher average basket size and increased customer transactions. Pre-tax profit margin expanded to 12.7%, representing a 40 basis point year-over-year improvement, while gross margin rose 100 basis points due to lower freight costs and operating efficiencies. Diluted earnings per share increased 12% to $1.28. Segment results were robust, with Marmaxx reporting 6% comparable sales growth and a 14.9% profit margin, and HomeGoods delivering 5% comparable sales growth and a 13.5% profit margin. TJX Canada and TJX International achieved comparable sales increases of 8% and 3%, respectively. The company returned $1.1 billion to shareholders during the quarter through dividends and share repurchases.

For the fourth quarter, management expects comparable sales growth of 2%–3% and earnings per share of $1.33–$1.36. Full-year guidance was raised to reflect anticipated 4% comparable sales growth and consolidated sales between $59.7 billion and $59.9 billion, with a projected pre-tax profit margin of 11.6%. Sustained traffic growth, margin expansion, and disciplined capital return reinforce The TJX Companies, Inc. (NYSE:TJX)’s resilience within discretionary retail and strengthen the investment case for continued share appreciation.

Founded in 1976 and headquartered in Framingham, Massachusetts, The TJX Companies, Inc. (NYSE:TJX) is a global off-price retailer offering apparel and home fashions at discounted prices through banners including T.J. Maxx, Marshalls, HomeGoods, Sierra, and TK Maxx. The company stands 4th in the list of 12 best retail stocks to buy according to analysts.