TJX vs Lowe's
This page compares TJX and Lowe's, examining their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company creates value, manages operations, and faces competitive environments without favour or bias. Educational content, not financial advice.
This page compares TJX and Lowe's, examining their business models, financial performance, and market context in a neutral, accessible way. It outlines how each company creates value, manages operatio...
Why It's Moving
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]
Lowe's Powers Through Q3 with Pro Growth and Key Acquisition Boost
- Adjusted EPS climbed 5.9% to $3.06, beating prior-year figures and underscoring operational strength despite softer retail comps.[1]
- Total sales hit $20.8 billion, up $0.6 billion year-over-year, fueled by 11.4% online growth and double-digit gains in home services and Pro segments.[1]
- Completed $8.8 billion Foundation Building Materials deal adds 370+ locations to enhance Pro assortment, fulfillment speed, and trade credit in high-growth regions.[1]
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]
Lowe's Powers Through Q3 with Pro Growth and Key Acquisition Boost
- Adjusted EPS climbed 5.9% to $3.06, beating prior-year figures and underscoring operational strength despite softer retail comps.[1]
- Total sales hit $20.8 billion, up $0.6 billion year-over-year, fueled by 11.4% online growth and double-digit gains in home services and Pro segments.[1]
- Completed $8.8 billion Foundation Building Materials deal adds 370+ locations to enhance Pro assortment, fulfillment speed, and trade credit in high-growth regions.[1]
Which Baskets Do They Appear In?
Value Retail Stocks (Budget-Conscious Consumer Play)
With consumer sentiment falling, particularly among budget-conscious households, spending habits are shifting towards value-focused retailers. This theme identifies companies poised to attract customers who are looking to stretch their dollars on essential goods.
Published: September 14, 2025
Explore BasketJob Market Strength Fuels Consumer Spending
Recent data shows jobless claims have fallen for six consecutive weeks, signaling a resilient labor market. This trend suggests continued economic stability and creates potential opportunities in companies that benefit from strong consumer spending.
Published: July 27, 2025
Explore BasketThe Great Retail Price Divide
This collection of stocks represents retailers capitalizing on Amazon's price increases by offering better deals on everyday essentials. These companies were carefully selected by our analysts for their potential to attract budget-conscious shoppers looking for more affordable alternatives.
Published: July 21, 2025
Explore BasketWhich Baskets Do They Appear In?
Value Retail Stocks (Budget-Conscious Consumer Play)
With consumer sentiment falling, particularly among budget-conscious households, spending habits are shifting towards value-focused retailers. This theme identifies companies poised to attract customers who are looking to stretch their dollars on essential goods.
Published: September 14, 2025
Explore BasketJob Market Strength Fuels Consumer Spending
Recent data shows jobless claims have fallen for six consecutive weeks, signaling a resilient labor market. This trend suggests continued economic stability and creates potential opportunities in companies that benefit from strong consumer spending.
Published: July 27, 2025
Explore BasketThe Great Retail Price Divide
This collection of stocks represents retailers capitalizing on Amazon's price increases by offering better deals on everyday essentials. These companies were carefully selected by our analysts for their potential to attract budget-conscious shoppers looking for more affordable alternatives.
Published: July 21, 2025
Explore BasketLow-Cost Leaders
These companies have mastered the art of operational efficiency, allowing them to offer highly competitive pricing that attracts loyal customers. Handpicked by our analysts, this collection features businesses positioned to thrive even during economic uncertainty.
Published: June 17, 2025
Explore BasketEveryday Essentials
These companies power our daily lives by offering must-have products at wallet-friendly prices. Carefully selected by our analysts, this collection features retail giants with business models built to thrive even when consumers are watching every penny.
Published: June 17, 2025
Explore BasketInvestment Analysis
TJX
TJX
Pros
- TJX has a strong market position as a leading off-price apparel and home fashions retailer with diverse product segments globally.
- The company demonstrates high profitability with a normalized return on equity exceeding 60%, indicating efficient capital use.
- Analysts overwhelmingly rate TJX as a 'Strong Buy', expecting modest stock price growth supported by robust sales projections.
Considerations
- TJX's price-to-earnings ratio near 33 suggests potential overvaluation compared to earnings, which may concern value investors.
- The company’s quick ratio below 0.6 indicates limited short-term liquidity, posing some risk in meeting obligations without inventory sales.
- Competitive pressures and changing consumer preferences in retail could disrupt TJX’s growth and profitability momentum.
Lowe's
LOW
Pros
- Lowe’s benefits from its position as a major home improvement retailer with steady revenue generation in a relatively stable sector.
- The company maintains a reasonable valuation with a price-to-earnings ratio around 19, which is lower than TJX’s, attracting value investors.
- It has a large market capitalization and sufficient scale to capitalize on housing market trends and remodeling cycles.
Considerations
- Lowe’s is subject to cyclical risks tied to the housing market and economic conditions that can impact consumer spending on home improvement.
- The company faces aggressive competition from other large retailers and online platforms, pressuring margins and market share.
- Recent stock price volatility and a decline in share price alongside sector-wide headwinds may signal execution or growth challenges.
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