Amazon.com (symbol AMZN) is projected to account for one-half of all internet-based U.S. retail sales by 2021, according to brokerage firm Needham & Co., up from about one-third of sales in 2016. The threat to competitors in the retail space has become so dire that a "Death by Amazon” index that tracks the stock prices of 54 retailers sits near a four-year low, according to research firm Bespoke Investment Group, which compiles the index.
Yet, there are a few big retailers that are finding ways to thrive despite the Amazon onslaught. The world's largest off-price retailer, TJX Companies (TJX) is one of them. Here's why its stores and its stock should stand up to competition from Amazon. (Share prices, returns and other data are as of April 25.)
TJX specializes in discounted apparel and home goods at more than 3,800 stores in North America, Europe and Australia. Similar deals abound online. But shoppers keep returning to TJX’s stores for the treasure hunt, aiming to find a gem of a deal off the rack.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
TJX’s stores, which include TJ Maxx and Marshall’s, feature an ever-changing lineup of brand-name clothing and designer fashions. Merchandise deliveries arrive in stores several times a week, keeping shoppers guessing about what they’ll find. The stores lack walls between departments, encouraging shoppers to browse for bargains throughout the store.
Online competition doesn’t appear to pose a major threat. TJX’s revenues should reach $35 billion in the 12-month period that ends in January 2018, up 5.4% over the prior fiscal year, estimates Bank of America Merrill Lynch, which rates the stock a “buy.” Profits are also rising, along with TJX’s dividend, which the firm recently hiked by 20% — increasing its payout for the 21st consecutive year.
TJX by the Numbers
- Share price: $78.78
- Market value: $50.9 billion
- Price-earnings ratio: 20
- Estimated 12-month profit growth: 10.5%
- Dividend yield: 1.3%
-
The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next ActBecause “Life is what happens when you’re busy making other plans.”
-
Five Destinations for Active and Chill Travelers AlikeWhether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
