Stock Report | October 2, 2012 | NYS Symbol: TJX | TJX is in the S&P 500

TJX Companies Inc (The)

55555

S&P Recommendation BUY

Price
$45.17 (as of Oct 2, 2012)

12-Mo. Target Price
$50.00

Investment Style
Large-Cap Growth

UPDATE: PLEASE SEE THE ANALYST'S LATEST RESEARCH NOTE IN THE COMPANY NEWS SECTION

GICS Sector Consumer Discretionary
Sub-Industry Apparel Retail

Summary TJX operates several chains of off-price apparel and home fashion specialty stores in the U.S., Canada, Germany, Poland, Ireland and the U.K.

Key Stock Statistics (Source S&P, Vickers, company reports)
52-Wk Range
$46.67– 26.89
Trailing 12-Month EPS
$2.26
Trailing 12-Month P/E
20.0
$10K Invested 5 Yrs Ago
$32,954

S&P Oper. EPS 2013 E
S&P Oper. EPS 2014 E
P/E on S&P Oper. EPS 2013 E
Common Shares Outstg. (M)

2.50
2.77
18.1
736.1

Market Capitalization(B)
Yield (%)
Dividend Rate/Share
Institutional Ownership (%)

Price Performance

$33.250
1.02
$0.46
87

Beta
S&P 3-Yr. Proj. EPS CAGR(%)
S&P Credit Rating

0.56
17
A

Qualitative Risk Assessment

30-Week Mov. Avg.

10-Week Mov. Avg.

12-Mo. Target Price

Relative Strength

GAAP Earnings vs. Previous Year
Up

Down

Volume Above Avg.

No Change

STARS

LOW

MEDIUM

HIGH

Below Avg.

Our risk assessment reflects our view of TJX's leadership position in off-price retail and promising new merchandising and productivity initiatives that could boost sales and profit margins. This is offset by what we see as an inconsistent earnings track record and an uncertain outlook for consumer discretionary spending. 50
40
30
20

2-for-1

Vol.

Quantitative Evaluations

Mil.
60
40
20
0
5

S&P Quality Ranking
D
4

4

3

4

C

B-

A+
B

B+

A-

A

Relative Strength Rank

1

MODERATE

47

MJ JASONDJFMAMJ JASONDJFMAMJ JASONDJFMAMJ JASOND

LOWEST = 1

2009

2010

2011

Options: ASE, CBOE

®

®

®

We forecast a 6% rise in consolidated samestore sales in FY 13 (Jan.), mainly driven by higher customer traffic. We think TJX's strong value proposition across brands and its ability to respond quickly to changes in customer buying preferences position the company well for
U.S. market share gains. We also see improved merchandising supporting encouraging sales trends in Canada and Europe. Coupled with planned expansion (TJX is projecting about a
5% increase in square footage) and a 53rd week of sales in FY 13, we see net sales reaching $25.6 billion.
We look for lean inventories to support merchandise margin improvement in FY 13. We also expect $50 million to $75 million of planned cost reductions to offset increased investments in stores, a new distribution center for the Marmaxx division, a new data center and systems, and e-commerce development.
Assuming share repurchases and an estimated
$0.07 benefit from FY 13's 53rd week, we see
EPS of $2.50 in FY 13, versus FY 12's $1.99
(before $0.06 of A.J. Wright closing and store conversion costs).

Investment Rationale/Risk
®

®

®

HIGHEST = 99

2012

Analysis prepared by Equity Analyst Jason N. Asaeda on Aug 16, 2012, when the stock traded at $44.67.
Highlights

A+

4

3

We recently upgraded our opinion on the shares to buy, from hold. Through frequent inflow of new assortments, we see TJX successfully engaging customers in a competitive retail environment. We also think the conversion of former A.J. Wright stores to the T.J. Maxx and
Marshalls banners in FY 12 has widened the demographic reach of the company's core Marmaxx division. In addition, we look for Marmaxx to generate ample operating cash flow to fund
TJX's planned opening of 150 net stores
(including 15 in Canada and 10 in Europe) and repurchase of $1.2 billion to $1.3 billion of company stock in FY 13.
Risks to our recommendation and target price include sales shortfalls due to changes in consumer spending habits and buying preferences; merchandise availability; increased promotional activity by competitors; and fluctuations in foreign currency exchange rates.
We arrive at our 12-month target price of $50 by applying TJX's historical high multiple of 18X to our FY 14 EPS estimate. Given our positive company outlook, we think the shares should trade at a premium to their 10-year historical average forward P/E multiple of 15X.

Please read the Required Disclosures and Analyst Certification on the last page of this report.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies, Inc.

Revenue/Earnings Data
Revenue (Million $)
1Q
2Q
2013
5,798
5,946
2012
5,220
5,468
2011
5,017
5,068
2010
4,354
4,748
2009
4,364
4,621
2008
4,108
4,313

3Q
-5,793
5,526
5,245
4,762
4,737

4Q
-6,710
6,332
5,942
5,380
5,488

Year
-23,191
21,942
20,288
19,000
18,647

Earnings Per Share ($)
2013
0.55
0.56
2012
0.34
0.45
2011
0.40
0.37
2010
0.25
0.31
2009
0.22
0.23
2008
0.17
0.23

E0.62
0.53
0.46
0.41
0.29
0.27

E0.77
0.62
0.43
0.47
0.29
0.33

E2.50
1.93
1.65
1.42
1.04
0.83

Fiscal year ended Jan. 31. Next earnings report expected: Mid
November. EPS Estimates based on S&P Operating Earnings; historical GAAP earnings are as reported.

Dividend Data (Dates: mm/dd Payment Date: mm/dd/yy)
Amount
($)

Date
Decl.

Ex-Div.
Date

Stk. of
Record

Payment
Date

0.095
0.115
0.115
0.115

12/01
04/03
06/13
09/20

02/07
05/08
08/07
11/06

02/09
05/10
08/09
11/08

03/01/12
05/31/12
08/30/12
11/29/12

Dividends have been paid since 1980. Source: Company reports.

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Business Summary August 16, 2012

Corporate Information

CORPORATE OVERVIEW. With over $23 billion in annual revenues, TJX Companies is the largest U.S. offprice family apparel and home fashion retailer. As of June 28, 2012, the company's core Marmaxx Group division operated 1,005 T.J. Maxx and 891 Marshalls stores. TJX also operated 393 HomeGoods stores in the U.S.; 24 HomeSense and 338 T.K. Maxx stores in Europe; and 87 HomeSense, 220 Winners and 12 Marshalls stores in Canada. The company closed its A.J. Wright business in February 2011 and its StyleSense test concept in January 2012.

Investor Contact
S. Lang (508-390-2323)

TJX believes it derives a competitive advantage by offering rapidly changing assortments of quality brand name and designer merchandise at prices usually 20% to 60% below department and specialty store regular prices. With over 2,900 stores, the company has substantial buying power with more than 15,000 vendors worldwide. TJX purchases later in the buying cycle than department and specialty stores. Generally, purchases are for current selling seasons, with a limited quantity of packaway inventory intended for a future selling season. A combination of opportunistic buying, an expansive distribution infrastructure, and a low expense structure enable the company to offer everyday savings to its customers.

Telephone
508-390-1000.

PRIMARY BUSINESS DYNAMICS. TJX's primary growth drivers are new store openings and same-store sales (sales results for stores open for all or a portion of two consecutive fiscal years). The company is targeting 5% to 6% annual retail square footage growth from FY 11 through FY 13. In FY 12, retail square footage increased by about 2% with the net addition of 46 stores.
The treasure hunt nature of the off-price shopping experience requires the company to continuously replenish its stores with exciting merchandise to drive same-store sales. By maintaining a liquid inventory position, TJX's buyers can buy close to need and into current market trends. However, this approach subjects the company to risks on the timing, quantity and nature of inventory flowing to the stores. In FY 12, same-store sales rose 4% on a constant currency basis, reflecting increases in both average transaction value and customer traffic.
IMPACT OF MAJOR DEVELOPMENTS. In January 2007, TJX disclosed that an unauthorized intruder had accessed its computer systems and may have stolen customer data. The company subsequently reported in February 2007 that the security breach had first occurred in July 2005, and that data involving credit and debit card transactions at U.S. and Puerto Rican stores (excluding Bob's) and credit card-only transactions at Canadian stores from January 2003 through June 2004 were compromised. TJX also reported that drivers' license numbers and related names and addresses associated with unreceipted merchandise returns at T.J. Maxx, Marshall, and HomeGoods stores in the U.S. and Puerto Rico from September through
December 2003 and May and June 2004 were compromised. In the second quarter of FY 08, the company recorded a reserve of $107 million (after-tax), or $0.23 per share, for its potential cash liabilities from pending litigation, proceedings, investigations and other claims, as well as legal and other costs and expenses, arising from the computer intrusions.
UPCOMING CATALYSTS. In July 2010, TJX announced plans to expand Marshalls into Canada. The company, which expects to open six stores in FY 12, estimates that the Canadian market can support 90 to 100
Marshalls stores. In December 2010, TJX announced plans to consolidate its A.J. Wright division by converting the majority of the stores to its more profitable banners and closing the remaining stores, A.J.
Wright's two distribution centers, and its home office. As of May 2011, all A.J. Wright stores had been closed, with 90 reopening as T.J. Maxx, Marshalls or HomeGoods stores this spring. The overall financial impact of this action is expected to be positive, with the company estimating annual earnings benefit of
$25 million to $30 million beginning in FY 13, well above A.J. Wright's recent annual earnings of approximately $10 million.
FINANCIAL TRENDS. From FY 01 through FY 06, TJX's net sales increased at a compound annual growth rate (CAGR) of 11%, and operating earnings rose at a CAGR of 5%. We believe that the markedly slower pace of earnings growth reflected weakening demand for home fashion product at HomeGoods, the overly aggressive expansion of A.J. Wright, which placed a strain on operations, and losses at Bob's Stores, which the company acquired in December 2003 and sold off in August 2008. In FY 07, we believe that merchandise changes at HomeGoods and better execution of off-price buying at Marmaxx contributed to
TJX's 8.9% net sales increase. Expense controls also supported 12.6% growth in operating earnings.
These positive factors drove a 7.1% net sales increase and 14.7% earnings growth in FY 08.
With U.S. consumers pulling back on spending in FY 09, net sales growth slowed to 2.6% and operating earnings were essentially flat. Foreign currency exchange rates and the 53rd week in FY 09 also impacted results. Forex had a two percentage-point negative impact on net sales and reduced EPS by $0.05, whereas the 53rd week benefited EPS by $0.09. We believe improved merchandising and a stronger value message in marketing drove the company's 6.1% net sales increase in FY 10. Operating earnings rose 36% for the fiscal year, supported by inventory and cost controls as well as expense leverage from higher sales.
Forex benefited EPS by $0.01 in FY 10. TJX maintained positive momentum in its business in FY 11, in our view, as net sales rose 8.2% and operating earnings were up 10.4%. While net sales growth moderated to
5.7% in FY 12 on consolidation of the A.J. Wright business, operating earnings increased 14.8% on improved merchandise margins and expense leverage.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies, Inc.

Office
770 Cochituate Road, Framingham, MA 01701.

Fax
508-390-2828.
Website http://www.tjx.com Officers
Chrmn
B. Cammarata
Pres
E.L. Herrman
CEO
C.M. Meyrowitz

Board Members
Z. Abdalla
A. M. Bennett
D. T. Ching
A. B. Lane
J. F. O'Brien

Domicile
Delaware
Founded
1956
Employees
168,000
Stockholders
73,000

EVP, CFO & Chief
Acctg Officer
S. Goldenberg
EVP & Chief Admin
Officer
J. Naylor

J. B. Alvarez
B. Cammarata
M. F. Hines
C. M. Meyrowitz
W. B. Shire

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Quantitative Evaluations
S&P Fair Value
Rank

3+

Expanded Ratio Analysis
1

2

3

4

5

LOWEST

HIGHEST

Based on S&P's proprietary quantitative model, stocks are ranked from most overvalued (1) to most undervalued (5).

$46.10 Analysis of the stock's current worth, based on S&P's proprietary

Fair Value
Calculation

quantitative model suggests that TJX is slightly undervalued by
$0.93 or 2.1%.

Investability
Quotient
Percentile

100
LOWEST = 1

Technical
Evaluation

LOW
BEARISH

Insider Activity

2012
1.51
11.92
14.49
23.36
773.8

2011
1.20
9.86
12.12
19.58
812.8

2010
0.94
7.82
9.73
15.64
855.2

2009
0.85
8.82
11.14
17.67
884.5

Figures based on calendar year-end price

Key Growth Rates and Averages

HIGHEST = 100

TJX scored higher than 100% of all companies for which an S&P
Report is available.

Volatility

Price/Sales
Price/EBITDA
Price/Pretax Income
P/E Ratio
Avg. Diluted Shares Outstg (M)

AVERAGE

NEUTRAL

1 Year

3 Years

5 Years

9 Years

5.69
11.69

7.00
17.05

5.85
16.06

7.25
11.11

Ratio Analysis (Annual Avg.)
Net Margin (%)
% LT Debt to Capitalization
Return on Equity (%)

6.45
19.44
47.43

6.18
20.19
46.82

5.50
20.65
43.65

5.07
23.69
42.14

HIGH

Since September, 2012, the technical indicators for TJX have been
BEARISH.

UNFAVORABLE

Past Growth Rate (%)
Sales
Net Income

FAVORABLE

Company Financials Fiscal Year Ended Jan. 31
Per Share Data ($)
Tangible Book Value
Cash Flow
Earnings
S&P Core Earnings
Dividends
Payout Ratio
Calendar Year
Prices:High
Prices:Low
P/E Ratio:High
P/E Ratio:Low

2012
4.06
2.56
1.93
1.92
NA
NA
2011
32.75
21.28
17
11

2011
3.75
2.21
1.65
1.66
0.29
15%
2010
24.25
17.88
15
11

2010
3.31
1.93
1.42
1.44
0.24
17%
2009
20.32
9.58
14
7

2009
2.37
1.49
1.04
1.02
0.21
15%
2008
18.76
8.90
18
9

2008
2.28
1.22
0.83
0.82
0.14
16%
2007
16.23
12.87
20
16

2007
2.33
1.18
0.82
0.82
0.11
14%
2006
14.92
11.08
18
14

2006
1.86
1.11
0.71
0.70
0.09
12%
2005
12.98
9.98
18
14

2005
1.53
0.93
0.65
0.61
0.07
10%
2004
13.41
10.32
21
16

2004
1.37
0.87
0.64
0.61
0.07
10%
2003
11.85
7.77
19
12

2003
1.18
0.73
0.54
0.51
0.06
11%
2002
11.23
7.65
21
14

23,191
2,933
486
35.7
2,411
38.0%
1,496
1,490

21,942
2,661
458
39.1
2,164
38.1%
1,340
1,346

20,288
2,426
435
39.5
1,952
37.8%
1,214
1,229

19,000
1,833
398
38.1
1,451
37.0%
915
893

18,647
1,811
365
39.9
1,243
37.9%
772
756

17,405
1,616
353
39.2
1,247
37.7%
777
778

16,058
1,444
405
39.0
1,009
31.6%
690
687

14,913
1,394
288
33.5
1,080
38.5%
664
615

13,328
1,334
238
27.3
1,068
38.4%
658
619

11,981
1,171
208
25.4
938
38.3%
578
546

Balance Sheet & Other Financial Data (Million $)
Cash
1,602
Current Assets
5,133
Total Assets
8,282
Current Liabilities
3,063
Long Term Debt
774
Common Equity
3,209
Total Capital
3,984
Capital Expenditures
803
Cash Flow
1,982
Current Ratio
1.7
% Long Term Debt of Capitalization
19.4
% Net Income of Revenue
6.5
% Return on Assets
18.4
% Return on Equity
47.4

1,818
5,100
7,972
3,133
774
3,100
3,874
707
1,798
1.6
20.0
6.1
17.4
44.7

1,745
4,804
7,464
2,895
774
2,889
3,664
429
1,649
1.7
21.1
6.0
17.8
48.3

454
3,626
6,178
2,768
384
2,135
2,646
583
1,313
1.3
14.5
4.8
14.3
42.9

733
3,992
6,600
2,761
853
2,131
3,028
527
1,137
1.5
28.2
4.1
12.2
34.9

857
3,749
6,086
2,383
808
2,290
3,120
378
1,130
1.6
25.9
4.5
13.4
37.1

466
3,140
5,496
2,252
807
1,893
2,700
496
1,096
1.4
29.9
4.3
13.1
37.9

307
2,905
5,075
2,204
599
1,653
2,405
429
953
1.3
24.9
4.5
14.0
41.4

246
2,452
4,397
1,691
692
1,552
2,369
409
897
1.5
29.2
4.9
15.8
44.5

492
2,241
3,940
1,566
694
1,409
2,145
397
786
1.4
32.3
4.8
15.3
42.1

Income Statement Analysis (Million $)
Revenue
Operating Income
Depreciation
Interest Expense
Pretax Income
Effective Tax Rate
Net Income
S&P Core Earnings

Data as orig reptd.; bef. results of disc opers/spec. items. Per share data adj. for stk. divs.; EPS diluted. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked. UR-Under Review.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies, Inc.

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Sub-Industry Outlook

Stock Performance

Our fundamental outlook for apparel retailers is neutral. In 2012, we believe a combination of new fashion trends and a steady flow of promotions will support a low single digit increase in apparel sales.

GICS Sector: Consumer Discretionary
Sub-Industry: Apparel Retail

propositions are likely to outperform their peers.
Year to date through September 14, the S&P Apparel
Retail Index rose 39.0%, versus a 16.6% gain for the
S&P 1500 Composite Index. In 2011, the sub-industry index outperformed the broader market, increasing
13.2% versus a 0.3% decline for the S&P 1500. In our view, the positive price performance of the group reflected the expectation of a consumer spending recovery. Apparel sales increased 3.8% in 2011, reflecting gains across most channels, according to The NPD
Group Inc. consumer estimated data. Sales at manufacturer-owned stores rose 14.7%, followed by
6.5% and 5.6% increases in the specialty and off-price channels, respectively. Sales rose only
1.4% in the mass channel, reflecting, we believe, cutbacks in spending by lower-income customers, while sales at national chains and department stores grew 3.0% and 2.9%, respectively. In 2011, market shares were relatively static with the exception of the specialty channel, which added nearly a point to 33% and held the largest share of the apparel market.

Based on S&P 1500 Indexes
Month-end Price Performance as of 09/28/12
160
140

--Jason Asaeda

120
100
80
60

We believe apparel cost inflation contributed to sales growth in 2011. While consumers have long benefited from apparel being a deflationary category, retail prices increased last year (more on fashion styles and less on basic apparel) due to higher commodity costs (particularly cotton), manufacturing labor wages, and product freight charges. Fortunately, many apparel retailers found that their customers, while shopping with an eye toward value, were willing to stretch their budgets when the merchandise was right.

40
20
0

2008
Sub-Industry

2009

Sector

2010

2011

2012

S&P 1500

NOTE: All Sector & Sub-Industry information is based on the
Global Industry Classification Standard (GICS)

With commodity costs starting to ease, we see an opportunity for apparel retailers to regain lost margin in 2012, particularly in the back half of the year. We also look for apparel retailers to maintain discipline in inventory and expense management in support of earnings growth. We believe companies with strong brands, differentiated products, superior customer service and attractive price-value

Sub-Industry : Apparel Retail Peer Group*: Off-Price Apparel Retailers
Peer Group
TJX Companies
Ascena Retail Group
Ross Stores
Stein Mart

Stock
Symbol

Stk.Mkt.
Cap.
(Mil. $)

Recent
Stock
Price($)

52
Week
High/Low($)

TJX

33,250

45.17

46.67/26.89

0.56

1.0

20

46.10

A+

100

6.5

19.4

ASNA
ROST
SMRT

3,150
14,767
371

20.70
65.95
8.58

22.62/12.69
70.82/37.82
9.34/5.80

1.40
0.69
2.44

Nil
0.8
Nil

20
20
25

31.30
67.00
8.70

B+
A+
B-

96
98
70

5.9
7.6
1.7

NA
9.1
NA

Beta

Yield
(%)

P/E
Ratio

NA-Not Available NM-Not Meaningful NR-Not Rated. *For Peer Groups with more than 15 companies or stocks, selection of issues is based on market capitalization.

Source: S&P.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies,Inc.

Fair
Value
Calc.($)

S&P Return on
Quality IQ
Revenue
Ranking %ile
(%)

LTD to
Cap
(%)

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
S&P Analyst Research Notes and other Company News
October 2, 2012
12:34 pm ET ... SEPTEMBER SAME-STORE SALES ESTIMATES FOR SELECTED
RETAILERS (KSS 50.87****): We project a flat comp for KSS and comp gains of
4.0% for TJX Companies (TJX 45, Buy), 4.0% for Ross Stores (ROST 66, Hold), 4.0% for Limited Brands (LTD 49, Buy), 2.0% for Buckle (BKE 46, Buy), 5.0% for Gap
(GPS 36, Sell), 3.2% for Macy's (M 38, Hold), 6.0% for Nordstrom (JWN 56, Hold),
2.5% for Target (TGT 63, Strong Buy), and 7.0% for Costco (COST 100, Hold). We think comp performance was stronger in the first half of September, supported by
Labor Day sales and back-to-school shopping. We see late-month fall clearance sales carrying into October ahead of the holiday season. /J. Asaeda
August 14, 2012
01:30 pm ET ... S&P RAISES OPINION ON SHARES OF THE TJX COMPANIES TO
BUY FROM HOLD (TJX 44.88****): We keep our FY 13 (Jan.) and FY 14 EPS estimates at $2.50 and $2.77, respectively, but raise our target price by $5 to $50 on a revised historical P/E valuation. Jul-Q EPS of $0.55, vs. adjusted $0.45, beats our estimate by $0.04 on above-plan sales and profit margin improvement across all segments. With its value pricing and frequent in-flow of new assortments, we see TJX successfully engaging shoppers in the U.S., Canada and Europe. We also think increased investments being made this year in stores, infrastructure, and e-commerce development bode well for long-term growth. /J. Asaeda
August 2, 2012
01:12 pm ET ... JULY SAME-STORE SALES RESULTS FOR SELECTED RETAILERS
(LTD 47.05****): Our index of 10 retailers beat our 3.4% sales-weighted July comp growth estimate, at 4.8%. Calendar shifts in major sales events worked in LTD's favor, as comps rose 12% vs. our 5% growth estimate, but against Nordstrom
(JWN 53, Hold), whose 0.9% comp gain fell short of our 3.0% growth projection. In the off-price channel, Ross Stores (ROST 66, Hold) and TJX Companies (TJX 44,
Hold) both reported 7% comp increases, beating our 5% and 6% growth estimates, respectively. As July was largely a clearance month, we look for
August sales to provide a better read on consumer spending. /J. Asaeda
July 5, 2012
TJX posts 7.0% higher June same-store sales, 9.0% higher total sales. Says, with above-plan sales in June and strong flow-through to the bottom line, TJX is now expecting its Q2 EPS to be in the range of $0.52-$0.53, which would represent double-digit growth on top of double-digit growth in last year's Q2. For the full year, ups EPS guidance to $2.31-$2.39.
July 5, 2012
11:59 am ET ... JUNE SAME-STORE SALES RESULTS FOR SELECTED RETAILERS
(LTD 46.97****): Our index of 10 retailers misses our sales-weighted Jun same store gain estimate of 3.3%, at 2.8%. Semi-annual sales drove comps up 7.0% at
LTD and 8.1% at Nordstrom (JWN 52, Hold), vs. our 3.0% and 5.0% growth forecasts. By delivering value, TJX Companies (TJX 44, Hold) and Ross Stores
(ROST 67, Hold) also beat our 4.0% and 6.0% comp growth estimates, at 7.0% each. Gap's (GPS 28, Sell) flat comp fell short of our 3.0% growth forecast on lower international sales. Kohl's (KSS 48, Buy) reported a 4.2% comp decline but progress in building inventory, in line with our expectations. /J. Asaeda

12:42 pm ET ... S&P MAINTAINS HOLD OPINION ON SHARES OF THE TJX
COMPANIES, INC. (TJX 42.51***): Apr-Q EPS of $0.55, vs. adjusted $0.39, beats our $0.46 estimate on higher merchandise margins and expense leverage off of an 8% comp increase. We think TJX's value pricing, extensive global vendor base, and ability to respond quickly to changes in customer buying preferences position the company well for market share gains in the U.S. We also see improved execution supporting encouraging sales trends in Canada and Europe.
We lift our FY 13 (Jan.) EPS estimate $0.20 to $2.50 and raise our target price by $7 to $45 solely on historical P/E valuation. /J. Asaeda
March 1, 2012
UP 0.31 to 36.92... TJX posts 9% higher February same-store sales, 12% higher total sales.
February 22, 2012
02:29 pm ET ... S&P MAINTAINS HOLD OPINION ON SHARES OF THE TJX
COMPANIES, INC. (TJX 35.18***): On a 2-for-1 split basis, adjusted Jan-Q EPS of
$0.64, vs. $0.53, tops our estimate by $0.01. We think TJX's value pricing, extensive global vendor base, and ability to respond quickly to changes in customer buying preferences position the company well for market share gains in the U.S. We also see improved merchandising supporting encouraging sales trends in Canada and Europe. With TJX additionally guiding $1.2B-$1.3B of share buybacks, we lift our FY 13 (Jan.) EPS forecast $0.05 to $2.30. We raise our target price by $2 to $38 on peer and historical P/E analyses. /J. Asaeda
February 1, 2012
The TJX Companies, Inc. announced that Scott Goldenberg, 58, has been promoted to Chief Financial Officer, retaining his Executive Vice President title, effective January 29, 2012, the beginning of TJX's fiscal year. Mr. Goldenberg will oversee Corporate Finance for TJX and continue to report to Jeffrey Naylor who had resumed the CFO position in 2009. Mr. Naylor will continue as Senior
Executive Vice President, Chief Administrative Officer and also have responsibility for other corporate functions, including Information Technology,
Legal, Risk Management, and Investor Relations.
February 1, 2012
The TJX Companies, Inc. announced that it has elected Zein Abdalla to its Board of Directors. Zein Abdalla, is Chief Executive Officer of PepsiCo Europe, a position he has held since November 2009. Mr. Abdalla is responsible for PepsiCo's food and beverage businesses in Continental Europe as well as the UK and sub-Sahara Africa, which together generated approximately $10 billion in revenues in 2010.

May 31, 2012
11:20 am ET ... MAY SAME-STORE SALES RESULTS FOR SELECTED RETAILERS
(TJX 41.99***): Supported by new summer assortments in stores, our index of 10 retailers beats our sales-weighted May comp growth estimate of 3.4%, at 4.1%.
The index's best performers were TJX and Ross Stores (ROST 63, Hold), both reporting 8% gains, vs. our 6.0% growth estimates. While we think sharper pricing is resonating with Kohl's (KSS 46, Buy) customers, low inventory cost the company sales, as comps fell 4.2%, vs. the 2% decline we had expected. On lack of strength in denim sales, Buckle (BKE 39, Hold) also disappointed with a modest
0.2% comp gain, vs. our 5% growth estimate. /J. Asaeda
May 15, 2012
UP 2.69 to 42.39... TJX posts $0.55 vs. $0.39 Q1 adj. EPS on 8% same-store sales rise, 11% total revenue rise. Capital IQ consensus forecast was $0.54. Sees Q2
EPS of $0.47-$0.50, FY 13 EPS of $2.27-$2.37. S&P Capital IQ raises estimate, target, maintains hold....
May 15, 2012

Source: S&P.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies,Inc.

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Analysts' Recommendations
Monthly Average Trend

Wall Steet Consensus Opinion
Buy

Buy/Hold

Hold

Weak Hold

B

BH

H

WH

Sell
S

No Opinion

BUY/HOLD

TJX Trend

Companies Offering Coverage

Wall Street Average
B
BH
H
WH
S

Number of Analysts Following Stock
40
30
20

Stock Price ($)
50

40

30

20

O

N

D

J

F

M

A

M

2010

J

J

A

S

O

N

D

J

F

M

A

2011

M

J

J

A

S

2012

Of the total 38 companies following TJX, 29 analysts currently publish recommendations.
No. of Ratings
12
6
10
1
0
0
29

Buy
Buy/Hold
Hold
Weak Hold
Sell
No Opinion
Total

% of Total
41
21
34
3
0
0
100

1 Mo. Prior 3 Mos. Prior
11
11
6
6
10
10
1
1
0
0
0
0
28
28

Wall Street Consensus Estimates
Estimates

2012

Wall Street Consensus vs. Performance
2013

2014

2012 Actual $1.93

3
2.5
2
1.5

M

J

J

A

S

O

N

D

J

F

M

A

2011

Fiscal Years
2014
2013
2014 vs. 2013
Q3'14
Q3'13
Q3'14 vs. Q3'13

Over 30 firms follow this stock; not all firms are displayed. Argus Research Company
Avondale Partners, LLC
BMO Capital Markets, U.S. Equity Research
Barclays
BofA Merrill Lynch
Buckingham Research Group Inc.
CL King & Associates, Inc.
Canaccord Genuity
Center for Financial Research & Analysis, Inc.
Citigroup Inc
Collins Stewart LLC
Cowen and Company, LLC
Credit Suisse
Deutsche Bank
FBR Capital Markets & Co.
Goldman Sachs
Gradient Analytics, Inc.
ISI Group Inc.
JP Morgan
Jefferies & Company, Inc.
Johnson Rice & Company, L.L.C.
Lazard Capital Markets
MKM Partners LLC
Moody?s
Morgan Stanley
Morningstar Inc.
Nomura Securities Co. Ltd.
Northcoast Research
Oppenheimer & Co. Inc.
RBC Capital Markets

M

J

J

A

S

2012

Avg Est.
2.77
2.48
12%

High Est.
3.05
2.56
19%

Low Est.
2.66
2.39
11%

# of Est.
26
28
-7%

Est. P/E
16.3
18.2
-10%

0.70
0.61
15%

0.72
0.65
11%

0.67
0.59
14%

8
26
-69%

64.5
74.0
-13%

A company's earnings outlook plays a major part in any investment decision. Standard & Poor's organizes the earnings estimates of over 2,300
Wall Street analysts, and provides their consensus of earnings over the next two years. This graph shows the trend in analyst estimates over the past 15 months.

Source: S&P, Capital IQ Estimates, Inc.
Redistribution or reproduction is prohibited without written permission. Copyright ©2012 The McGraw-Hill Companies,Inc.

For fiscal year 2013, analysts estimate that TJX will earn $2.48. For the 2nd quarter of fiscal year
2013, TJX announced earnings per share of $0.56, representing 23% of the total annual estimate. For fiscal year 2014, analysts estimate that TJX's earnings per share will grow by 12% to $2.77.

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Glossary
S&P STARS
Since January 1, 1987, Standard and Poor's Equity
Research Services has ranked a universe of common stocks based on a given stock's potential for future performance. Under proprietary STARS (STock
Appreciation Ranking System), S&P equity analysts rank stocks according to their individual forecast of a stock's future total return potential versus the expected total return of a relevant benchmark (e.g., a regional index
(S&P Asia 50 Index, S&P Europe 350 Index or S&P 500
Index)), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective. Data used to assist in determining the STARS ranking may be the result of the analyst's own models as well as internal proprietary models resulting from dynamic data inputs.
S&P 12-Month Target Price
The S&P equity analyst's projection of the market price a given security will command 12 months hence, based on a combination of intrinsic, relative, and private market valuation metrics, including S&P Fair Value.
Investment Style Classification
Characterizes the stock as Growth or Value, and indicates its capitalization level. Growth is evaluated along three dimensions (earnings, sales and internal growth), while Value is evaluated along four dimensions
(book-to-price, cash flow-to-price, dividend yield and sale-to-price). Growth stocks score higher than the market average on growth dimensions and lower on value dimensions. The reverse is true for Value stocks.
Certain stocks are classified as Blend, indicating a mixture of growth and value characteristics and cannot be classified as purely growth or value.
S&P EPS Estimates
Standard & Poor's earnings per share (EPS) estimates reflect analyst projections of future EPS from continuing operations, and generally exclude various items that are viewed as special, non-recurring, or extraordinary. Also,
S&P EPS estimates reflect either forecasts of S&P equity analysts; or, the consensus (average) EPS estimate, which are independently compiled by Capital IQ, a data provider to Standard & Poor's Equity Research. Among the items typically excluded from EPS estimates are asset sale gains; impairment, restructuring or merger-related charges; legal and insurance settlements; in process research and development expenses; gains or losses on the extinguishment of debt; the cumulative effect of accounting changes; and earnings related to operations that have been classified by the company as discontinued. The inclusion of some items, such as stock option expense and recurring types of other charges, may vary, and depend on such factors as industry practice, analyst judgment, and the extent to which some types of data is disclosed by companies.
S&P Core Earnings
Standard & Poor's Core Earnings is a uniform methodology for adjusting operating earnings by focusing on a company's after-tax earnings generated from its principal businesses. Included in the Standard &
Poor's definition are employee stock option grant expenses, pension costs, restructuring charges from ongoing operations, write-downs of depreciable or amortizable operating assets, purchased research and development, M&A related expenses and unrealized gains/losses from hedging activities. Excluded from the definition are pension gains, impairment of goodwill charges, gains or losses from asset sales, reversal of prior-year charges and provision from litigation or insurance settlements.
Qualitative Risk Assessment
The S&P equity analyst's view of a given company's operational risk, or the risk of a firm's ability to continue as an ongoing concern. The Qualitative Risk Assessment

is a relative ranking to the S&P U.S. STARS universe, and should be reflective of risk factors related to a company's operations, as opposed to risk and volatility measures associated with share prices.
Quantitative Evaluations
In contrast to our qualitative STARS recommendations, which are assigned by S&P analysts, the quantitative evaluations described below are derived from proprietary arithmetic models. These computer-driven evaluations may at times contradict an analyst's qualitative assessment of a stock. One primary reason for this is that different measures are used to determine each. For instance, when designating STARS, S&P analysts assess many factors that cannot be reflected in a model, such as risks and opportunities, management changes, recent competitive shifts, patent expiration, litigation risk, etc.
S&P Quality Ranking
Growth and stability of earnings and dividends are deemed key elements in establishing S&P's Quality
Rankings for common stocks, which are designed to capsulize the nature of this record in a single symbol. It should be noted, however, that the process also takes into consideration certain adjustments and modifications deemed desirable in establishing such rankings. The final score for each stock is measured against a scoring matrix determined by analysis of the scores of a large and representative sample of stocks. The range of scores in the array of this sample has been aligned with the following ladder of rankings:
A+
A
AB+
NR

Highest
High
Above Average
Average
Not Ranked

B
BC
D

Below Average
Lower
Lowest
In Reorganization

S&P Fair Value Rank
Using S&P's exclusive proprietary quantitative model, stocks are ranked in one of five groups, ranging from
Group 5, listing the most undervalued stocks, to Group 1, the most overvalued issues. Group 5 stocks are expected to generally outperform all others. A positive (+) or negative (-) Timing Index is placed next to the Fair Value ranking to further aid the selection process. A stock with a (+) added to the Fair Value Rank simply means that this stock has a somewhat better chance to outperform other stocks with the same Fair Value Rank. A stock with a (-) has a somewhat lesser chance to outperform other stocks with the same Fair Value Rank. The Fair Value rankings imply the following: 5-Stock is significantly undervalued; 4-Stock is moderately undervalued; 3-Stock is fairly valued; 2-Stock is modestly overvalued; 1-Stock is significantly overvalued.
S&P Fair Value Calculation
The price at which a stock should trade at, according to
S&P's proprietary quantitative model that incorporates both actual and estimated variables (as opposed to only actual variables in the case of S&P Quality Ranking).
Relying heavily on a company's actual return on equity, the S&P Fair Value model places a value on a security based on placing a formula-derived price-to-book multiple on a company's consensus earnings per share estimate. Insider Activity
Gives an insight as to insider sentiment by showing whether directors, officers and key employees who have proprietary information not available to the general public, are buying or selling the company's stock during the most recent six months.
Funds From Operations FFO
FFO is Funds from Operations and equal to a REIT's net income, excluding gains or losses from sales of property, plus real estate depreciation.
Investability Quotient (IQ)
The IQ is a measure of investment desirability. It serves

Redistribution or reproduction is prohibited without written permission. Copyright © 2012 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

as an indicator of potential medium-to-long term return and as a caution against downside risk. The measure takes into account variables such as technical indicators, earnings estimates, liquidity, financial ratios and selected S&P proprietary measures.
S&P's IQ Rationale:
TJX Companies
Proprietary S&P Measures
Technical Indicators
Liquidity/Volatility Measures
Quantitative Measures
IQ Total

Raw Score
52
32
17
64
165

Max Value
115
40
20
75
250

Volatility
Rates the volatility of the stock's price over the past year.
Technical Evaluation
In researching the past market history of prices and trading volume for each company, S&P's computer models apply special technical methods and formulas to identify and project price trends for the stock.
Relative Strength Rank
Shows, on a scale of 1 to 99, how the stock has performed versus all other companies in S&P's universe on a rolling 13-week basis.
Global Industry Classification Standard (GICS)
An industry classification standard, developed by
Standard & Poor's in collaboration with Morgan Stanley
Capital International (MSCI). GICS is currently comprised of 10 Sectors, 24 Industry Groups, 68 Industries, and 154
Sub-Industries.
S&P Issuer Credit Rating
A Standard & Poor's Issuer Credit Rating is a current opinion of an obligor's overall financial capacity (its creditworthiness) to pay its financial obligations. This opinion focuses on the obligor's capacity and willingness to meet its financial commitments as they come due. It does not apply to any specific financial obligation, as it does not take into account the nature of and provisions of the obligation, its standing in bankruptcy or liquidation, statutory preferences, or the legality and enforceability of the obligation. In addition, it does not take into account the creditworthiness of the guarantors, insurers, or other forms of credit enhancement on the obligation.
The Issuer Credit Rating is not a recommendation to purchase, sell, or hold a financial obligation issued by an obligor, as it does not comment on market price or suitability for a particular investor. Issuer Credit Ratings are based on current information furnished by obligors or obtained by Standard & Poor's from other sources it considers reliable. Standard & Poor's does not perform an audit in connection with any Issuer Credit Rating and may, on occasion, rely on unaudited financial information. Issuer Credit Ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances. Exchange Type
ASE - American Stock Exchange; AU - Australia Stock
Exchange; BB - Bulletin Board; NGM - Nasdaq Global
Market; NNM - Nasdaq Global Select Market; NSC Nasdaq Capital Market; NYS - New York Stock
Exchange; OTN - Other OTC (Over the Counter); OTC Over the Counter; QB - OTCQB; QX - OTCQX; TS - Toronto
Stock Exchange; TXV - TSX Venture Exchange; NEX NEX Exchange.
S&P Equity Research Services
Standard & Poor's Equity Research Services U.S. includes Standard & Poor's Investment Advisory
Services LLC; Standard & Poor's Equity Research
Services Europe includes McGraw-Hill Financial
Research Europe Limited trading as Standard & Poor's;
Standard & Poor's Equity Research Services Asia includes McGraw-Hill Financial Singapore Pte. Limited's

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The) offices in Singapore, Standard & Poor's Investment
Advisory Services (HK) Limited in Hong Kong, Standard &
Poor's Malaysia Sdn Bhd, and Standard & Poor's
Information Services (Australia) Pty Ltd.

underperform the total return of a relevant benchmark over the coming 12 months, and the share price not anticipated to show a gain.

Abbreviations Used in S&P Equity Research Reports
CAGR- Compound Annual Growth Rate; CAPEX- Capital
Expenditures; CY- Calendar Year; DCF- Discounted Cash
Flow; EBIT- Earnings Before Interest and Taxes; EBITDAEarnings Before Interest, Taxes, Depreciation and
Amortization; EPS- Earnings Per Share; EV- Enterprise
Value; FCF- Free Cash Flow; FFO- Funds From Operations;
FY- Fiscal Year; P/E- Price/Earnings ; PEG RatioP/E-to-Growth Ratio; PV- Present Value; R&D- Research
& Development; ROE- Return on Equity; ROI- Return on
Investment; ROIC- Return on Invested Capital; ROAReturn on Assets; SG&A- Selling, General &
Administrative Expenses; WACC- Weighted Average
Cost of Capital

expected to underperform the total return of a relevant benchmark by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.

Dividends on American Depository Receipts (ADRs) and
American Depository Shares (ADSs) are net of taxes
(paid in the country of origin).

Required Disclosures
In contrast to the qualitative STARS recommendations covered in this report, which are determined and assigned by S&P equity analysts, S&P’s quantitative evaluations are derived from S&P’s proprietary Fair
Value quantitative model. In particular, the Fair Value
Ranking methodology is a relative ranking methodology, whereas the STARS methodology is not. Because the
Fair Value model and the STARS methodology reflect different criteria, assumptions and analytical methods, quantitative evaluations may at times differ from (or even contradict) an equity analyst’s STARS recommendations.
As a quantitative model, Fair Value relies on history and consensus estimates and does not introduce an element of subjectivity as can be the case with equity analysts in assigning STARS recommendations.
S&P Global STARS Distribution

555551-STARS (Strong Sell) : Total return is

Relevant benchmarks: In North America the relevant benchmark is the S&P 500 Index, in Europe and in Asia, the relevant benchmarks are generally the S&P Europe
350 Index and the S&P Asia 50 Index.
For All Regions: All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is, or will be directly or indirectly, related to the specific recommendations or views expressed in this research report.
S&P Global Quantitative Recommendations Distribution
In North America: As of June 29, 2012, Standard & Poor's
Quantitative Services North America recommended
40.1% of issuers with buy recommendations, 20.1% with hold recommendations and 39.8% with sell recommendations. In Europe: As of June 29, 2012, Standard & Poor's
Quantitative Services Europe recommended 45.6% of issuers with buy recommendations, 21.0% with hold recommendations and 33.4% with sell recommendations.
In Asia: As of June 29, 2012, Standard & Poor's
Quantitative Services Asia recommended 52.7% of issuers with buy recommendations, 18.4% with hold recommendations and 28.9% with sell recommendations.
Globally: As of June 29, 2012, Standard & Poor's
Quantitative Services globally recommended 46.9% of issuers with buy recommendations, 19.6% with hold recommendations and 33.5% with sell recommendations.

In North America: As of June 29, 2012, research analysts at Standard & Poor's Equity Research Services North
America recommended 37.5% of issuers with buy recommendations, 57.5% with hold recommendations and 5.0% with sell recommendations.

Additional information is available upon request.

In Europe: As of June 29, 2012, research analysts at
Standard & Poor's Equity Research Services Europe recommended 32.5% of issuers with buy recommendations, 50.8% with hold recommendations and 16.7% with sell recommendations.

This report has been prepared and issued by Standard &
Poor's and/or one of its affiliates. In the United States, research reports are prepared by Standard & Poor's
Investment Advisory Services LLC ("SPIAS"). In the
United States, research reports are issued by Standard
& Poor's ("S&P"); in the United Kingdom by McGraw-Hill
Financial Research Europe Limited, which is authorized and regulated by the Financial Services Authority and trades as Standard & Poor's; in Hong Kong by Standard
& Poor's Investment Advisory Services (HK) Limited, which is regulated by the Hong Kong Securities Futures
Commission; in Singapore by McGraw-Hill Financial
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Ltd ("SPIS"), which is regulated by the Australian
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SPIAS, which is also registered in Korea as a cross-border investment advisory company.

In Asia: As of June 29, 2012, research analysts at
Standard & Poor's Equity Research Services Asia recommended 34.7% of issuers with buy recommendations, 57.8% with hold recommendations and 7.5% with sell recommendations.
Globally: As of June 29, 2012, research analysts at
Standard & Poor's Equity Research Services globally recommended 36.5% of issuers with buy recommendations, 56.4% with hold recommendations and 7.1% with sell recommendations.

55555 5-STARS (Strong Buy) : Total return is expected to outperform the total return of a relevant benchmark, by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.

55555 4-STARS (Buy) : Total return is expected to outperform the total return of a relevant benchmark over the coming 12 months, with shares rising in price on an absolute basis.

55555 3-STARS (Hold) : Total return is expected to closely approximate the total return of a relevant benchmark over the coming 12 months, with shares generally rising in price on an absolute basis.

55555 2-STARS (Sell) : Total return is expected to

Other Disclosures

The research and analytical services performed by
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& Poor's.
Standard & Poor's or an affiliate may license certain intellectual property or provide pricing or other services to, or otherwise have a financial interest in, certain issuers of securities, including exchange-traded investments whose investment objective is to substantially replicate the returns of a proprietary

Redistribution or reproduction is prohibited without written permission. Copyright © 2012 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

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Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The) investment and other business decisions. Standard &
Poor's rating opinions do not address the suitability of any security. Standard & Poor's does not act as a fiduciary. While Standard & Poor's has obtained information from sources it believes to be reliable,
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Securities and Exchange Commission under the
Securities Regulation Code of the Philippines. Any future offer or sale thereof is subject to registration requirements under the Code unless such offer or sale qualifies as an exempt transaction.
U.S. STARS Cumulative Model Performance
Hypothetical Growth Due to Price Appreciation of $100
For the Period 12/31/1986 through 09/30/2012

S&P 500

5 STARS

4 STARS

3 STARS

2 STARS

1 STARS

not necessarily the norm and there is no assurance that they can be sustained. Past model performance of
STARS is no guarantee of future performance.
For model performance calculation purposes, the equities within each STARS category at December 31,
1986 were equally weighted. Thereafter, additions to the composition of the equities in each STARS category are made at the average value of the STARS category at the preceding month end with no rebalancing. Deletions are made at the closing price of the day that the deletion is made. Performance was calculated from inception through March 31, 2003 on a monthly basis. Thereafter, performance is calculated daily. Equities in each STARS category will change over time, and some or all of the equities that received STARS rankings during the time period shown may not have maintained their STARS ranking during the entire period.
The model performance does not consider taxes and brokerage commissions, nor does it reflect the deduction of any advisory or other fees charged by advisors or other parties that investors will incur when their accounts are managed in accordance with the models.
The imposition of these fees and charges would cause actual performance to be lower than the performance shown. For example, if a model returned 10 percent on a
$100,000 investment for a 12-month period (or $10,000) and an annual asset-based fee of 1.5 percent were imposed at the end of the period (or $1,650), the net return would be 8.35 percent (or $8,350) for the year.
Over 3 years, an annual 1.5% fee taken at year end with an assumed 10% return per year would result in a cumulative gross return of 33.1%, a total fee of $5,375 and a cumulative net return of 27.2% (or $27,200). Fees deducted on a frequency other than annual would result in a different cumulative net return in the preceding example. $2,400

$1,600

$800

$0
'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

The performance above represents only the results of
Standard & Poor's model portfolios. Model performance has inherent limitations. Standard & Poor's maintains the models and calculates the model performance shown, but does not manage actual assets. The U.S. STARS model performance chart is only an illustration of
Standard & Poor's (S&P) research; it shows how U.S. common stocks, ADRs (American Depositary Receipts) and ADSs (American Depositary Shares), collectively
“equities”, that received particular STARS rankings performed. STARS categories are models only; they are not collective investment funds. The STARS performance does not show how any actual portfolio has performed.
STARS model performance does not represent the results of actual trading of investor assets. Thus, the model performance shown does not reflect the impact that material economic and market factors might have had on decision-making if actual investor money had been managed. Performance is calculated using a time-weighted rate of return. While model performance for some or all STARS categories performed better than the S&P 500 for the period shown, the performance during any shorter period may not have, and there is no assurance that they will perform better than the S&P 500 in the future. STARS does not take into account any particular investment objective, financial situation or need and is not intended as an investment recommendation or strategy. Investments based on the
STARS methodology may lose money. High returns are

Redistribution or reproduction is prohibited without written permission. Copyright © 2012 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.

The Standard & Poor's 500 index is the benchmark for
U.S. STARS. The S&P 500 index is calculated in U.S. dollars and does not take into account the reinvestment of dividends. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Such costs would lower performance. It is not possible to invest directly in an index. The S&P 500 index includes a different number of constituents and has different risk characteristics than the STARS equities. Some of the
STARS equities may have been included in the S&P 500 index for some (but not necessarily all) of the period covered in the chart, and some such equities may not have been included at all. The S&P 500 excludes ADRs and ADSs. The methodology for calculating the return of the S&P 500 index differs from the methodology of calculating the return for STARS. Past performance of the S&P 500 index is no guarantee of future performance. An investment based upon the models should only be made after consulting with a financial advisor and with an understanding of the risks associated with any investment in securities, including, but not limited to, market risk, currency risk, political and credit risks, the risk of economic recession and the risk that issuers of securities or general stock market conditions may worsen, over time. Foreign investing involves certain risks, including currency fluctuations and controls, restrictions on foreign investments, less governmental supervision and regulation, less liquidity and the potential for market volatility and political instability. As with any investment, investment returns and principal value will fluctuate, so that when redeemed, an investor's shares may be worth more or less than their original cost.
For residents of Australia – This report is distributed by
Standard & Poor’s Information Services (Australia) Pty
Ltd ("SPIS") in Australia. The entirety of this report is approved by Mike Fink, who has reviewed and authorised its content as at the date of publication.

Stock Report | October 2, 2012 | NYS Symbol: TJX

TJX Companies Inc (The)
Any express or implied opinion contained in this report is limited to "General Advice" and based solely on consideration of the investment merits of the financial product(s) alone. The information in this report has not been prepared for use by retail investors and has been prepared without taking account of any particular person's financial or investment objectives, financial situation or needs. Before acting on any advice, any person using the advice should consider its appropriateness having regard to their own or their clients' objectives, financial situation and needs. You should obtain a Product Disclosure Statement relating to the product and consider the statement before making any decision or recommendation about whether to acquire the product. Each opinion must be weighed solely as one factor in any investment decision made by or on behalf of any adviser and any such adviser must accordingly make their own assessment taking into account an individual's particular circumstances.
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Services Guide for more information at www.fundsinsights.com.au. Redistribution or reproduction is prohibited without written permission. Copyright © 2012 Standard & Poor's Financial Services LLC.
STANDARD & POOR'S, S&P, S&P 500, S&P Europe 350 and STARS are registered trademarks of Standard & Poor's Financial Services LLC.