TJX Companies (TJX)

The sleeper story is that TJX's domestic business is weakening while international carries the load - Canada's 10% comp and Europe's sustained 7% are masking Marmaxx deceleration and unexplained margin pressure. Everyone will focus on the 5% Q4 beat, but the real signal is FY26 margin guidance down 10-20 bps despite 2-3% comp growth and scale benefits. The binding constraint is domestic market saturation forcing aggressive international expansion to maintain growth, evident in the 1,200 store increase to long-term targets. Herrman's most revealing quote: 'We have more talent where I don't have to risk the core businesses to allow us to entertain these opportunities than we've ever had before' - translation, domestic growth is tapped out. My view changes if they can quantify the margin pressure sources and demonstrate domestic traffic acceleration beyond weather normalization.