TJX Beats Out Costco and Walmart as Underrated Growth Stock

TJX Companies, owner of T.J. Maxx and Marshalls, may be an attractive buy for growth investors right now. Unlike Costco Wholesale (NASDAQ: COST) and Walmart(NASDAQ: WMT), which have high earnings multiples of 40 times or more, TJX's valuation is much lower at nearly 30 times earnings.

Despite posting strong revenue growth of 9% in the first quarter of fiscal 2027, Costco and Walmart may be overvalued. TJX, on the other hand, has a solid track record with comparable sales growth of 6% in the same period.

The company's stock is down 1% this year, but its potential for strong growth due to adverse economic conditions makes it an underrated growth stock that may have room to rise higher. TJX's earnings are coming up on Wednesday, and a solid performance could boost its growth rate in the coming quarters.