Here's What Led The TJX Companies' (TJX) Strong Revenue and Profit Growth

Madison Investments, an investment advisor, released its “Madison Large Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund decreased 2.2% in the third quarter compared to an 8.1% gain for the S&P 500 Index. The current market focus on short-term profits led the fund to underperform the benchmark considerably in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Madison Large Cap Fund highlighted stocks such as The TJX Companies, Inc. (NYSE:TJX). The TJX Companies, Inc. (NYSE:TJX) is an off-price apparel and home fashion retailer. The one-month return of The TJX Companies, Inc. (NYSE:TJX) was 1.82%, and its shares gained 22.42% of their value over the last 52 weeks. On November 10, 2025, The TJX Companies, Inc. (NYSE:TJX) stock closed at $146.72 per share, with a market capitalization of $163.29 billion.

Madison Large Cap Fund stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its third quarter 2025 investor letter:

"The top five contributors for the quarter were Alphabet, Lowe’s, The TJX Companies, Inc. (NYSE:TJX), Brookfield Corporation, and Parker-Hannifin. Two of our retailers were also good contributors in the quarter. TJX Companies, an off-price retailer, continues to do well. Its value-based retail stores are resonating with consumers given the backdrop of economic uncertainty, which led to strong revenue and profit growth in the quarter and a raised outlook for the remainder of the year."

The TJX Companies, Inc. (NYSE:TJX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held The TJX Companies, Inc. (NYSE:TJX) at the end of the second quarter, compared to 77 in the previous quarter.  While we acknowledge the potential of The TJX Companies, Inc. (NYSE:TJX) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered The TJX Companies, Inc. (NYSE:TJX) and shared the list of stocks Jim Cramer discussed recently. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.