TJX shows it's the right retail stock for this moment with a stellar quarter, guidance boost

TJX Companies on Wednesday reported strong first-quarter results, sending shares of the retailer higher and showcasing why we've owned the stock for years. Revenue in the three months ended May 2 increased 9.2% year over year to $14.32 billion, exceeding the consensus estimate of $14.03 billion, according to LSEG. Earnings per share (EPS) jumped 29.3% to $1.19, also exceeding expectations of $1.02, LSEG data showed. Same-store sales increased 6%, ahead of the 4.1% Street estimate, according to FactSet. Shares of TJX are up 6% as of midday trading. It's a much-needed rebound after a tough month that saw the stock fall more than 10% from its April highs. Not that we were necessarily complaining, because on Friday we used that pullback as an opportunity to add to our position for the first time in 10 months. But it's encouraging to see Wednesday's numbers validate that decision. In addition to the strong results, management raised its full-year outlook for earnings per share, with the new target roughly matching Wall Street expectations. To be sure, TJX's new full-year sales outlook — along with its sales and EPS guide for the ongoing quarter — came up a bit short versus the consensus. But we aren't concerned because history tells us management is keeping it conservative, setting the team up to overdeliver when all is said and done. The stock reaction is a clear signal the market understands this to be the case as well. TJX YTD mountain TJX's year-to-date stock performance. …