Ask Matt: Is TJX a bargain?

An earlier version of this story misidentified one of TJX' store brands. BJ's Wholesale is an unrelated private company.

Q: Is TJX stock a bargain?

A: TJX (TJX) is turning into one of the retailers to beat. Its business model of selling discounted apparel and home goods is generating steady growth in the shaky retail industry.

The company, best known for its retail concepts T.J. Maxx and Marshalls, Tuesday showed retail woes aren't universal. The company reported an adjusted profit of 86 cents a share, beating expectations by 2.4%. Revenue during the quarter gained 5.3% from the same year-ago period to $7.8 billion.

The fact that TJX is growing and beating expectations is a contrast against department stores. But despite strong earnings and revenue growth, shares of TJX are languishing along with the rest of retail. The stock has essentially gone nowhere this year, despite closing up $2.58, or 4%, to $68.18 Tuesday. Analysts think the fact the fundamentals are strong - and the stock hasn't moved - leaves room to make money. Analysts say shares of TJX should be worth $81.08 a share in 18 months, which if correct would be 19% potential upside. That's not just speculation, either. Adjusted profit this fiscal year is expected to hit $3.16 a share, or 12% higher than in 2014. Another year of growth is expected next fiscal year of 5.1%. Investors will have to bet TJX can escape the woes  hurting other stores.

Paste BN markets reporter Matt Krantz answers a different reader question every weekday. To submit a question, e-mail Matt at mkrantz@usatoday.com or on Twitter @mattkrantz.