5 Best Retail Stocks to Buy Now

In this article, we will discuss the 5 best retail stocks to buy now. If you want to read our discussion on the retail industry, go directly to the 10 Best Retail Stocks to Buy Now.

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

Number of Hedge Fund Holders: 55

The TJX Companies, Inc. (NYSE:TJX) is a Framingham, Massachusetts-based off-brand department store brand. The company has emerged as one of the best retail stocks in the recent past.

On October 25, Kimberly Greenberger at Morgan Stanley increased the price target on The TJX Companies, Inc. (NYSE:TJX) from $77 to $80 and reiterated an Overweight rating. The analyst observed that the operating margins of the “off-price retailers” have gone down to pre-pandemic levels owing to the difficult macroeconomic environment. This has generated a debate over the long-term EBIT outlook for companies. However, Greenberger thinks that The TJX Companies, Inc. (NYSE:TJX) will be able to recapture the EBIT margin in FY23, and the overall growth opportunity is underappreciated by the market. The analyst also increased the company’s EPS forecasts for FY24.

Greenberger also added that recent fieldwork revealed that The TJX Companies, Inc. (NYSE:TJX) has a strong assortment of branded products across all categories that will play positively for the stock in the long run. The TJX Companies, Inc. (NYSE:TJX) offers an annual forward dividend yield of 1.51% as of November 18.