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Ask Matt: Can I still profit from TJX?

Matt Krantz
USA TODAY
This September 25, 2014 file photo shows a sign for TJ Maxx in Washington, DC.  Discount retailer TJX on February 25, 2015 announced it would raise minimum wages for its US workers, essentially matching an announcement last week from larger rival Wal-Mart Stores. The TJX Companies, which owns Marshall's, TJ Maxx and other discount apparel and home-goods chains, will hike wages of US staff to at least $9 an hour beginning in June and at least $10 per hour in 2016. "This pay initiative is an important part of our strategies to continue attracting and retaining the best talent," said TJX chief executive Carol Meyrowitz.

Q: Can I still profit from TJX?

A: Shares of TJX (TJX), the discount retailer best known for its T.J. Maxx and Marshalls chains, were on sale, too. But now, not so much.

The stock jumped $5.17, or 7.2%, to $76.78 a share Tuesday following the company's better-than-expected quarterly results. TJX reported an adjusted quarterly profit of 80 cents a share, beating expectations calling for a profit of 76 cents a share, says S&P Capital IQ.

The problem, for investors, is that this stock is no longer an ignored bargain bin steal. Shares are up 42% over the past 12 months and are up 12% this year alone. That's a stellar performance in light of the Standard & Poor's 500 gaining just 6.3% over the past 12 months and 1.8% this year so far.

Analysts are still bullish on the company, giving the stock an average "outperform" rating. But the 18-month price target of $77.45 shows how much of the stock's rise is already behind it. If this average analyst price target is on target, that means the stock only has less than 1% upside before hitting it.

Longer term investors, though, might still take a shot. The stock is trading for less than the present value of the company's expected future cash flow, says NewConstructs.com. Just know that you're not picking this stock up for the steal that it was.

Follow Matt Krantz on Twitter @mattkrantz

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