The Jensen Quality Growth Investment Team added The TJX Companies, Inc (ticker: TJX) to the Quality Growth Strategy with an initial weighting of 2%. As of June 4, 2026, the Strategy had 28 holdings.
June 2026
Company Overview
The TJX Companies, Inc. was incorporated in 1962 and is headquartered in Framingham, Massachusetts. Ernie Herrman is TJX’s current CEO and president, and the company employs approximately 377,000 people worldwide.
TJX is a leading global off-price apparel and home fashions retailer. Off-price retailers like TJX take advantage of inefficiencies in the retail supply chain to purchase and sell merchandise at a discount relative to traditional retailers. Key TJX store concepts include T.J. Maxx, HomeGoods, and Marshalls.
What Led Us to Buy TJX
Our thesis for TJX is driven by the company’s strong business fundamentals and their alignment with key tenets of the Jensen Quality Growth Strategy’s investment selection process:
- Competitive Advantages: TJX is the clear market leader in off-price retail with significant scale advantages, global sourcing capabilities, and longstanding vendor relationships that are difficult to replicate. Its flexible buying model allows the company to capitalize on inefficiencies across the retail supply chain while offering consumers branded merchandise at attractive price points. Scale supports strong inventory turnover, purchasing power, and continued market share gains.
- Earnings Stability: TJX generates durable revenue and earnings supported by a diversified store base, broad customer appeal, and exposure across apparel and home categories. The company has historically demonstrated resilience across economic cycles as consumers increasingly seek value-oriented retailers during periods of macro uncertainty. Strong cash generation, modest leverage, and disciplined capital allocation further support financial strength.
- Valuation: TJX has long been viewed as a high-quality retailer, though valuation previously limited prospective returns. Improved confidence in the company’s long-term growth outlook and margin expansion opportunities, particularly within international markets and HomeGoods, created a more attractive opportunity relative to long-term earnings potential.
Why Now
While we have long viewed TJX as a high-quality business, the company’s valuation previously limited prospective returns despite strong fundamentals and consistent execution. Our improved confidence in the company’s long-term growth and margin expansion opportunities, combined with a more attractive entry point following recent share price weakness, created an opportunity to initiate a position in a business with durable competitive advantages, continued market share opportunities, and a long runway for earnings and cash flow growth.
Outlook
We expect continued growth supported by ongoing market share gains, healthy customer traffic trends, store expansion, and continued consumer preference toward value-oriented retailers. Margin expansion opportunities remain supported by improving profitability within HomeGoods, international execution, scale benefits, merchandising discipline, and supply chain efficiencies. Longer term, we believe TJX remains well positioned to deliver durable earnings growth through continued global store expansion, increased penetration across home categories, market share gains from traditional retailers, and sustained free cash flow generation.
Earnings Growth: The annual rate of growth of earnings typically measured as Earnings Per Share Growth.
Earnings Per Share: The net income of a company divided by the total number of shares it has outstanding.
Free Cash Flow: Is equal to the cash from operations of a company less capital expenditures.
Strategy holdings are subject to change and should not be considered recommendations to buy or sell any security. Please click here for a listing of the Quality Growth Strategy’s current holdings.
The company discussion is solely intended to illustrate the application of our investment approach and is not to be considered a recommendation by Jensen. The specific security identified is taken from a representative account of the Jensen Quality Growth Strategy and does not represent all of the securities purchased and sold for the Strategy. Our views expressed herein are subject to change and should not be construed as a recommendation or offer to buy or sell any security and are not designed or intended as a basis or determination for making any investment decision for any security. Our discussions should not be construed as an indication that an investment in a security has been or will be profitable, or that the investment recommendations or decisions we make in the future will be profitable or will equal the investment performance of any security discussed herein.
Certain information contained in this material represents or is based upon forward-looking statements, which can be identified by the use of terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “target,” “project,” “estimate,” “intend,” “continue” or “believe” or the negatives thereof or other variations thereon or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of a client account may differ materially from those reflected or contemplated in such forward-looking statements.
This information is current as of the date of this material and is subject to change at any time, based on market and other conditions.
Jensen Investment Management, Inc., is an investment adviser registered under the Investment Advisers Act of 1940. Registration with the SEC does not imply any level of skill or training. Although taken from reliable sources, Jensen cannot guarantee the accuracy of the information received from third parties.
© 2026 Jensen Investment Management
Related Insights
Jensen News & Insights
The Jensen Investment Team added IDEXX Laboratories (IDXX) to the Quality Growth Strategy, citing strong fundamentals, recurring revenue and high customer retention.
The Jensen Investment Team added Cintas (CTAS) to the Quality Growth Strategy due to its strong fundamentals, competitive advantages, and attractive valuation.
The Jensen Investment Team sold Intuit (INTU) from the Quality Growth Strategy, citing concerns over AI disruption, competitive advantages, and earnings predictability.
The Jensen Investment Team reestablished a position in Amphenol (APH) for the Quality Growth Strategy following an improved growth outlook.
The AI-driven stock selloff is creating gaps between price and value. Jensen identifies companies that may have durable moats and long-term upside.
The Jensen Investment Team sold portfolio holding ADP from the Quality Growth Strategy as the outlook for growth and returns became less compelling.