Shares of TJX Companies Inc (NYSE:TJX) were last seen up 4.9% to trade at $141.25 this morning, after the retailer's second-quarter results shot past expectations, with earnings of $1.10 on revenue of $14.4 billion. The parent of T.J. Maxx, Marshalls, and Home Goods has beaten earnings estimates in each of the previous four quarters, with post-earnings gains in three of those instances. Looking ahead, TJX raised its full-year earnings guidance to a range of $4.52 to $4.57. While other retailers are wary of ballooning tariffs, TJX benefits from its off-price business strategy, while purchasing merchandise from other stores after being imported into the U.S.
Earlier in the session, TJX hit a record high of $144, breaking above the previous milestone it had set in May. Year-to-date, the equity is up 16.4%, continuing to recover from its June pullback and add onto its gains from July.
Most analysts are backing TJX's outlook, with 18 of the 21 firms in coverage rating the stock a "buy" and the remaining three at "hold." Adding to the optimism, J.P. Morgan Securities lifted its price target to $148.
Options traders are even more confident in the equity, with 38,000 calls traded today compared to just 8,094 pulls -- activity that's 18 times the usual intraday volume. The most popular contract by far is the August 150 call, with new positions being opened there.
