4-Star Stocks Poised to Pop: TJX

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, apparel and home fashions retailer TJX Companies (NYS: TJX) has earned a respected four-star ranking.

With that in mind, let's take a closer look at TJX's business and see what CAPS investors are saying about the stock right now.

TJX facts

Headquarters (Founded)Framingham, Mass. (1956)
Market Cap$20.2 billion
IndustryApparel retail
Trailing-12-Month Revenue$22.55 billion
Management

CEO Carol Meyrowitz (since 2007)

CFO Jeffrey Naylor (since 2009)

Return on Equity (Average, Past 3 Years)43.4%
Cash/Debt$1.06 billion / $789 million
Dividend Yield1.4%

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 89% of the 537 members who have rated TJX believe the stock will outperform the S&P 500 going forward. These bulls include DeeFool33 and Polarimetric.

Just last month, DeeFool33 listed several of TJX's positives: "Good clothes & home items at good prices, many locations, credit card with rewards. Don't think this stock will rise very fast anymore but hard to go wrong holding this for years."

TJX even sports a solid three-year average operating margin of 10%. That's higher than that of retail giants like Costco (NAS: COST) (3%), Target (NYS: TGT) (7%), and Wal-Mart (NYS: WMT) (6%).

CAPS member Polarimetric expands on the TJX outperform argument:

This company realized right in time that growth potential in their flagship brand is limited and started aggressively promoting their other big brand, Marshalls, as an effective response. Stable sales in flagship TJ Maxx locations and growing sales in Marshalls locations should give this stock a great deal of upside. Also, great move on phasing out the laggard AJ Wright brand--this company's all lean muscle now.

What do you think about TJX, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to trackTJX?Add it to your watchlist.

At the time this article was published We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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