Keith Gangl, senior portfolio manager at Gradient Investments, highlighted The TJX Companies as one of his top stock picks for 2026. He cited the off-price retailer’s resilient business model and proven ability to improve margins even as competitors struggle with inventory markdowns. Gangl pointed to TJX’s track record of increasing same-store sales by approximately 4% year over year and expanding adjusted operating margin by nearly 50 basis points in the most recent quarter, arguing these metrics underscore management’s skill at balancing inventory flow, pricing and expense control.

Last year, TJX delivered four consecutive quarters of better-than-expected earnings, driving a 27.2% total return for shareholders. The company reported adjusted EPS growth of 11% on revenue rising 8% versus the prior year, despite broader macroeconomic headwinds including elevated inflation and shifting consumer spending patterns. Notably, TJX achieved merchandise gross margin expansion of 40 basis points, reflecting improved buying discipline and successful clearance strategies in its TJ Maxx, Marshalls and HomeGoods banners.

Looking into 2026, TJX management has projected mid-single-digit revenue growth and low-double-digit EPS gains, underpinned by tight inventory management and continued expansion into international markets. The company plans to open over 100 new stores across Europe and Asia this year, while also investing in digital capabilities to boost omnichannel sales, which grew by 20% last quarter. Analysts expect the off-price specialist to maintain its share gains as consumers trade down from full-price channels.