TJX Companies, known for its off-price retail chains like TJ Maxx, Home Goods, and Marshalls, continues to demonstrate resilience and robust performance in the market. With a unique retail model that thrives in nearly any economic environment, TJX’s stock has consistently outperformed the market, boasting a notable 30% increase in 2025. The company’s innovative inventory acquisition strategy—capitalizing on overproduction runs and similar merchandise—ensures a constantly refreshing selection for customers, enhancing the appeal of its physical stores.
This “treasure hunt” shopping experience not only draws customers in but also becomes particularly enticing during periods of high inflation, as more consumers seek attractive prices. Recently, during its fiscal third quarter ending November 1, TJX reported a 5% year-over-year increase in comparable sales, alongside a 12% rise in earnings per share, reaching $1.28—both surpassing market expectations. CEO Ernie Herrman expressed optimism about the company’s future growth, stating, “We see great potential to continue capturing market share and successfully growing TJX around the globe.”
Despite the positive strides made by TJX, a different retail stock is capturing attention for potential investment in 2026: Urban Outfitters. With a staggering 224% increase in stock value over the past three years—more than double TJX’s growth—Urban Outfitters stands out in the current retail landscape. It boasts a price-to-earnings (P/E) ratio of less than 15, considerably lower than TJX’s ratio of 35, offering an attractive buying opportunity in a market where bargains are hard to find.
In its most recent fiscal third quarter, Urban Outfitters reported a 12.3% increase in sales and an 8% rise in comparable sales. Earnings per share rose by 16%, showcasing the company’s ability to thrive even in challenging economic conditions. Management remains optimistic about future growth, attributing success to its diversified approach across various channels, brands, and product types. With positive guidance for the fourth quarter and a strong position heading into 2026, Urban Outfitters is seen as a compelling investment choice given its favorable pricing and growth potential.
