TJX is an American off-price departmental store. It specializes in selling apparel and home fashion products which are priced competitively for the value-conscious buyer. The post-pandemic period can be particularly favorable for TJX as consumers may look for value purchases more than premium purchases. TJX is ranked 85 in the Fortune 500 list, has tremendous scale, and operates 3300 stores across 6 countries. It has all the right moats to continue performing.
The long-term monthly chart of TJX demonstrates the uptrend that the stock has been in for the last decade. Starting January of 2020, the stock had been in a temporary downtrend and fell 23% from its January 2020 highs.
However, in April 2020, the stock reversed that fall and bounced up from an important area of value. This area of value was formed by the bottom of the long-term trend as well as an important support resistance level. The stock has risen 20% in April and May of 2020 and is poised to rise further. The target price now looks to be close to 64-65 levels and a stop loss can be placed below the support line at around 40.
Positions taken at $53.54 today and stop loss at $40 23.8% below. Take profit target $66 dollars for short term investors giving a profit of 23%.