The economy may be slowing, but the cash registers keep on scanning. October retail sales were up 1.3%—a sign people are shopping and spending money. The increase in retail sales may not have been evident in Target’s (TGT) earnings, but TJX Companies (TJX) saw its stock price get a boost after the company reported strong Q3 earnings. Although net sales were down, earnings per share and profit margins were higher than Wall Street expected. This is encouraging news as the holiday season kicks off.
Let’s take a look at the technical price action in TJX.
What TJX Stock Has Going For It
TJX stock hit an all-time high after a promising earnings report. Guidance from the company’s CEO Ernie Herrman indicated that consumers were attracted to the value and “treasure-hunt” shopping experience TJX stores offer.The stock is trading above its 20-, 50-, 100- and 200-day simple moving averages on above-average volume.RSI > 70Relative to the S&P 500 Index ($SPX) TJX is relatively flat.
Given that inflation is still front and center in everyone’s minds, customers prefer to shop for value. And TJX offers value to customers. As we head into the holiday shopping season, a little treasure hunting at your local TJ Maxx, Marshalls, or HomeGoods may be the retail therapy you need.
