Home Depot vs TJX
Home Depot and TJX are contrasted on this page to compare business models, financial performance, and market context. The analysis is presented in clear, straightforward terms to support neutral understanding of strategy, operations, and market positioning. Educational content, not financial advice.
Home Depot and TJX are contrasted on this page to compare business models, financial performance, and market context. The analysis is presented in clear, straightforward terms to support neutral under...
Why It's Moving
Home Depot reaffirms 2025 guidance and unveils optimistic 2026 outlook at investor conference, signaling steady growth ahead.
- Reaffirmed FY2025 guidance includes ~3% sales growth, $2B from GMS, and 12 new stores, underscoring resilience despite a 5-6% EPS dip from 2024.[1][3]
- Preliminary 2026 outlook anticipates modest demand pickup from lower rates and replacement cycles, with potential for 4-5% comps in a market recovery scenario driving faster profit growth.[1][2][3]
- Shares climbed 0.92% to $354.39 Friday as analysts eye the event as a pivot from earnings declines, with JP Morgan forecasting 2.2% SSS and $15.46 EPS.[2]
TJX Rides Macro Tailwinds with Ambitious 2,000-Store Expansion Push
- Q3 revenue hit $15.1B, beating estimates by 1.75%, with EPS of $1.28 up 12% YoY and pretax margins expanding to 12.7%, signaling robust operational efficiency.[1]
- CEO announced plans for 2,000 new stores on top of existing 5,000+ across nine countries, with geographic push including Spain in 2026 to capture more off-price demand.[1]
- Raised FY26 guidance to $59.7-$59.9B in sales and $4.63-$4.66 EPS, alongside a quarterly dividend of $0.425 per share, reinforcing capital return strength.[1][2]
Home Depot reaffirms 2025 guidance and unveils optimistic 2026 outlook at investor conference, signaling steady growth ahead.
- Reaffirmed FY2025 guidance includes ~3% sales growth, $2B from GMS, and 12 new stores, underscoring resilience despite a 5-6% EPS dip from 2024.[1][3]
- Preliminary 2026 outlook anticipates modest demand pickup from lower rates and replacement cycles, with potential for 4-5% comps in a market recovery scenario driving faster profit growth.[1][2][3]
- Shares climbed 0.92% to $354.39 Friday as analysts eye the event as a pivot from earnings declines, with JP Morgan forecasting 2.2% SSS and $15.46 EPS.[2]
TJX Rides Macro Tailwinds with Ambitious 2,000-Store Expansion Push
- Q3 revenue hit $15.1B, beating estimates by 1.75%, with EPS of $1.28 up 12% YoY and pretax margins expanding to 12.7%, signaling robust operational efficiency.[1]
- CEO announced plans for 2,000 new stores on top of existing 5,000+ across nine countries, with geographic push including Spain in 2026 to capture more off-price demand.[1]
- Raised FY26 guidance to $59.7-$59.9B in sales and $4.63-$4.66 EPS, alongside a quarterly dividend of $0.425 per share, reinforcing capital return strength.[1][2]
Which Baskets Do They Appear In?
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Explore BasketWhich Baskets Do They Appear In?
Retail Hybrid Model Growth Trends 2025
Costco's impressive sales growth, fueled by a 26.1% jump in digital demand, highlights the power of blending physical and online retail. This trend creates an investment opportunity in the e-commerce platforms, payment processors, and logistics companies that enable this successful hybrid model for all retailers.
Published: October 9, 2025
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Published: August 18, 2025
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Published: August 12, 2025
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Recent data shows new home sales jumping 7.4% monthly, signaling a strong housing market revival. This collection features carefully selected homebuilders and suppliers positioned to benefit from increasing construction activity and rising home prices.
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Published: June 30, 2025
Explore BasketSleep Well At Night Portfolio
A collection of premium defensive stocks expertly selected by our analysts to help protect your investments during market turbulence. These industry giants offer stability through consistent earnings, reliable dividends, and proven resilience in any economic climate.
Published: June 18, 2025
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Begin your investment journey confidently with this smartly designed collection of stocks. Our professional analysts have carefully selected these assets to give you instant global diversification paired with world-leading companies, creating the perfect foundation for long-term growth.
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Explore BasketProfit Sharers
These established market leaders don't just generate impressive profits—they're committed to sharing that wealth with you. Carefully selected by our analysts, these dividend powerhouses offer both reliable income streams and the stability of industry-leading businesses.
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Explore BasketGen-X Core Holdings
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Explore BasketBig Payout Candidates
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Published: June 17, 2025
Explore BasketInvestment Analysis
Pros
- Home Depot benefits from strong brand recognition and a dominant position in the US home improvement retail sector.
- The company maintains robust capital returns, with a solid dividend payout ratio and consistent share buybacks.
- Recent financial results show revenue growth and strong sales in high-value categories, supported by both professional and retail customer demand.
Considerations
- Home Depot faces increasing competition in the home improvement space, which could pressure market share and margins.
- Sales growth is sensitive to housing market trends and consumer spending, making it vulnerable to economic downturns.
- Recent quarters have seen a decline in return on invested capital and some pressure from slower inventory turnover and exchange-rate movements.
TJX
TJX
Pros
- TJX operates a successful off-price retail model with strong margins and a diversified international footprint.
- The company has demonstrated resilience in volatile markets, with lower price volatility compared to many peers.
- TJX maintains a conservative balance sheet and consistently generates strong cash flow from operations.
Considerations
- TJX's business is highly dependent on sourcing inventory at favourable prices, which can be disrupted by supply chain issues.
- The off-price retail sector faces growing competition from both traditional retailers and e-commerce platforms.
- International operations expose TJX to currency fluctuations and geopolitical risks in key markets.
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