TJX Corp. (TJX) Surged Following Results that Exceeded Expectations

Qualivian Investment Partners, an investment partnership focused on long-only public equities, released its Q3 2025 investor letter. A copy of the letter can be downloaded here. The fund outperformed the iShares MSCI USA Quality Factor ETF (QUAL) by 69.2% and 61.3% on a gross and net basis, since inception through September 30, 2025. It also exceeded the S&P 500 by 32.7% and 26.1% respectively, on a gross and net basis. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Qualivian Investment Partners 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 2.75%, and its shares gained 26.80% of their value over the last 52 weeks. On December 22, 2025, The TJX Companies, Inc. (NYSE:TJX) stock closed at $156.58 per share, with a market capitalization of $173.88 billion.

Qualivian Investment Partners stated the following regarding The TJX Companies, Inc. (NYSE:TJX) in its third quarter 2025 investor letter:

The S&P 500's performance in Q3 2025 was primarily driven by two key themes: continued investment and enthusiasm for Artificial Intelligence (AI), and the Federal Reserve's delivery of its first interest rate cut since 2024, which boosted investor risk appetite. Sector rotation saw Information Technology (especially semiconductors) and Communication Services maintain leadership due to AI-related growth. Also, market breadth improved as small-cap stocks staged a significant rally, though defensive sectors like Consumer Staples and Healthcare generally lagged. Within that context, our top 3 contributors in the quarter were Alphabet (GOOGL), O’Reilly Automotive (ORLY), and The TJX Companies, Inc. (NYSE:TJX).

TJX Companies reported strong results for fiscal Q3 2026 (calendar Q3 2025), with consolidated comparable sales increasing 5% and diluted EPS growing 12% to $1.28, both exceeding analysts' expectations. The off-price retailer's value proposition resonated with consumers, driving strong performance across all divisions, including a 6% comp sales increase at Marmaxx (T.J. Maxx and Marshalls) and leading the company to raise its full-year guidance."

The TJX Companies, Inc. (NYSE:TJX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 69 hedge fund portfolios held The TJX Companies, Inc. (NYSE:TJX) at the end of the third quarter, compared to 73 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 best forever stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

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