CTV National News: What the U.S.-U.K. trade deal mean for Canada
CTV National News: What the U.S.-U.K. trade deal mean for Canada
Vassy Kapelos says Canadian officials are taking the U.S.-U.K. trade deal as a 'somewhat positive sign' for their own trade negotiations.
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Globe and Mail
15 minutes ago
- Globe and Mail
Is TJX's 5% Drop Post Q1 Earnings a Caution or Opportunity?
The TJX Companies, Inc. TJX saw its shares drop 5% following the release of its first-quarter fiscal 2026 results on May 21, 2025. This performance marks a notable underperformance compared to the Zacks Retail - Discount Stores industry, the Zacks Retail and Wholesale sector, which slipped 1% and 0.5%, respectively, and the broader S&P 500, which advanced 0.2% during the same period. The TJX Companies' Price Performance Post-Earnings The TJX Companies has delivered relatively lower stock performance compared to some other major players in the discount retail sector, such as Dollar General Corporation DG, Dollar Tree DLTR and Costco Wholesale Corporation COST. During the same period, Dollar General Corporation, Dollar Tree and Costco Wholesale Corporation posted gains of 10.2%, 6.8% and 1.9%, respectively. Notably, the pullback in TJX shares came despite the company surpassing expectations on both the top and bottom lines. Its fiscal first-quarter results exceeded the Zacks Consensus Estimate for earnings and revenue, reflecting continued strength in customer traffic and solid comparable store sales across all divisions. Interestingly, the stock was trading near record levels ahead of the earnings release. Trading at $128.12 as of June 3, TJX shares are down 5.7% from their 52-week high of $135.85, which was reached on May 20, just a day before the earnings announcement. This divergence between solid earnings performance and stock price weakness raises a critical question for investors: Is the pullback a short-term overreaction or a long-term buying opportunity? TJX's Q1 Performance: Key Takeaways The TJX Companies reported a strong start to fiscal year 2026, demonstrating solid performance across all divisions. Growth was broad-based, fueled by an increase in customer traffic in both U.S. and international markets. As a result, net sales reached $13,111 million, marking a 5% year-over-year increase, consistent on a constant currency basis. Consolidated comparable store sales rose 3%, primarily driven by higher customer transactions. However, earnings per share (EPS) were 92 cents per share, down from 93 cents reported in the year-ago quarter. Breaking down the performance by segment, comparable store sales grew 2% at Marmaxx (U.S.), 4% at HomeGoods (U.S.), 5% at TJX Canada, and 5% at TJX International (Europe and Australia). Comparable sales increased in both apparel and home categories, underscoring TJX's effective strategy and positioning the company for long-term sustainability with a focus on driving customer transactions. TJX Reaffirms Growth Outlook Amid Challenges On its last earnings call, TJX highlighted a strong start to the fiscal second quarter and reaffirmed its focus on executing the core fundamentals of its off-price retail model. Management remains confident that the company's broad and compelling assortments, coupled with a resilient business model, will continue to attract value-conscious shoppers, even amid ongoing macroeconomic challenges and tariff-related pressures. The company expects consolidated comparable store sales growth of 2% to 3% for the fiscal second quarter. Quarterly EPS are projected to range between 97 cents and $1.00, indicating a 1% to 4% increase compared to 96 cents in the prior year's period. For the full fiscal year 2026, TJX anticipates comparable store sales growth of 2% to 3%, consolidated sales to be in the range of $58.1 billion to $58.6 billion, up 3% to 4% with EPS forecasted between $4.34 and $4.43, an increase of 2% to 4% from the previous year's $4.26. The TJX Companies' Strategic Strengths TJX Companies remains upbeat about its long-term prospects, grounded in a strong business model and a proven ability to adapt through various retail and economic cycles. The company credits its resilience to the flexibility of its off-price model, the experience of its leadership team, and a well-established global buying network that taps into a wide range of vendors worldwide. At the heart of TJX's strategy is its value proposition, delivering a compelling mix of brand, fashion, quality, and price, which continues to attract a broad and diverse customer base. This broad appeal is supported by a carefully curated mix of brands that sustain steady traffic. Backed by a flexible, global buying and supply chain model and a unique treasure-hunt shopping experience, it remains well-equipped to adapt to changing consumer preferences and capture market share in both stable and challenging economic conditions. TJX has also benefited from solid growth in both its physical stores and e-commerce channels. The company is rapidly expanding its footprint in the United States, Europe, Canada, and Australia. In the first quarter of fiscal 2026 alone, TJX added 36 new stores, ending the quarter with a total of 5,121 locations. Further, with an increasing number of consumers resorting to online shopping, The TJX Companies has undertaken several initiatives to boost online sales and strengthen its e-commerce business. Is TJX Stock's Discounted Valuation Good? The TJX Companies is currently trading at a notable discount compared to its industry peers, making it an appealing option for value-focused investors. As of now, TJX trades at a forward 12-month price-to-earnings (P/E) ratio of 27.75X, which is significantly lower than the industry average of 34.17X. While its valuation is lower than that of Costco Wholesale Corporation, which trades at a significantly higher 54.42X, it remains above other discount retail peers such as Dollar General Corporation and Dollar Tree, which have P/E ratios of 19.48X and 17.89X, respectively. TJX P/E Ratio (Forward 12 Months) The TJX Companies is also trading well above its 50-day and 200-day moving averages, an important bullish technical indicator. This breakout is not just technical but reflects growing market confidence in its growth story. TJX Companies: Navigating Cost Pressures and Global Risks Despite its strengths, TJX faces several challenges that could impact its near-term performance. Rising operating costs, driven by inflationary pressures and wage increases, may put pressure on margins despite ongoing efforts to manage expenses. Additionally, continued trade tensions and tariffs on imports from China and other countries remain a concern, while foreign exchange headwinds could further weigh on profitability. One of the key near-term risks for TJX is the impact of tariffs on both direct and indirect imports into the U.S. Management expects these pressures to weigh on fiscal second-quarter performance, with gross margin projected to decline by 40 basis points (bps) year over year to 30%. Despite mitigation strategies like pricing adjustments and sourcing shifts, the company forecasts a full-year gross margin contraction of 10 to 20 bps, which could strain profitability even if sales remain strong. Additionally, TJX's international operations make it vulnerable to currency fluctuations. Management anticipates foreign exchange headwinds will reduce pretax profit margin by 10 to 20 basis points in fiscal 2026, presenting further risks to overall performance. Downward Estimate Movement of TJX's Earnings Reflecting cautious sentiment around The TJX Companies, the Zacks Consensus Estimate for EPS has seen downward revisions. Over the past 30 days, the consensus estimate has declined 2 cents to $1.00 for the current quarter and a cent to $4.46 for the fiscal year, respectively. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Investor Takeaway for TJX Following the post-earnings dip, The TJX Companies presents a mixed picture for investors. While the company delivered better-than-expected results in the fiscal first quarter, driven by solid customer traffic and broad-based sales growth, external headwinds continue to weigh on sentiment. Inflationary cost pressures, rising wages, tariffs and currency fluctuations are expected to pressure margins in the near term. Additionally, recent downward revisions in earnings estimates reflect growing investor caution. That said, TJX's resilient off-price model, strong global footprint, and consistent execution provide a solid foundation for long-term growth. With shares trading at a reasonable valuation relative to peers, investors may consider holding the stock as the company navigates short-term challenges. As macro conditions stabilize and cost pressures ease, TJX could be well-positioned to regain momentum. The TJX Companies carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The TJX Companies, Inc. (TJX): Free Stock Analysis Report Dollar General Corporation (DG): Free Stock Analysis Report Dollar Tree, Inc. (DLTR): Free Stock Analysis Report Costco Wholesale Corporation (COST): Free Stock Analysis Report
16 minutes ago
Justice minister apologizes for comments that 'potentially eroded' trust with Indigenous peoples
OTTAWA — Justice Minister Sean Fraser apologized Wednesday for recent comments about the federal government's duty to consult First Nations regarding developing projects on their territories, saying his words 'potentially eroded a very precarious trust.' Article content The issue has emerged in light of Prime Minister Mark Carney's plan to introduce legislation that would fast-track approvals for major energy and infrastructure projects by cutting the timeline to two years, down from five. Article content Article content Article content The Assembly of First Nations, a national advocacy organization representing more than 600 First Nations across the country, has expressed concerns that, from what they have seen of the forthcoming bill, it 'suggests a serious threat' to First Nations treaty rights. Article content Article content In a recent letter to Carney, National Chief Cindy Woodhouse Nepinak cited the United Nations Declaration on the Rights of Indigenous Peoples, which outlines the principle of obtaining 'free, prior, and informed consent' regarding laws and decisions that affect Indigenous peoples. Article content When asked about that principle on Tuesday, Fraser outlined his interpretation of it, telling reporters that it demands 'a very deep level of engagement and understanding of the rights that may be impacted.' Article content However, he said, 'it stops short of a complete veto' when it comes to government decisions Article content On Wednesday, Fraser apologized for those comments, saying it gave some the impression of the government wanting to 'work unilaterally, not in partnership,' with Indigenous people. Article content Article content 'Despite innocent intentions, I think my comments actually caused hurt and potentially eroded a very precarious trust that has been built up over many years to respect the rights of Indigenous people in this country,' he said on his way into the Liberal caucus meeting. Article content The minister said that after he made those remarks he received a call from the national chief, 'expressing her frustration.' Article content Fraser said he apologized to Woodhouse Nepinak and committed to do so publicly. Article content 'This is completely on my own initiative,' Fraser told reporters. Article content 'I've not been asked to do this by anyone. (Woodhouse Nepinak) said that she would appreciate if I would offer some clarity. But this is not coming from anyone within government. This is something I feel compelled to do.' Article content National Post Article content staylor@ Article content Article content Article content
Globe and Mail
22 minutes ago
- Globe and Mail
Bitcoin Hedge Theory Meets a Harsh Boardroom Reality
The Bitcoin (CRYPTO: BTC) whitepaper compared the cryptocurrency to physical gold in 2008. 17 years later, the cryptocurrency seems ready to take on a more gold-like role in the global economy. But it's not all good news. A couple of tech giants have recently demonstrated that the traditional business world still lags behind in embracing Bitcoin as a long-term general asset. Here's what crypto investors need to know about this development. How Bitcoin earned its Wall Street stripes The Bitcoin platform has earned some Street cred in recent years. Large-scale investors have access to exchange-traded funds (ETFs) based on spot Bitcoin prices. These spot Bitcoin funds have nearly $121 billion of digital assets under management in June 2025. Some of the most significant buys of these ETFs come from old-school financial giants such as Goldman Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS). Massive companies like Tesla (NASDAQ: TSLA) and Block (NYSE: XYZ) have converted hundreds of millions of dollars into Bitcoin. Running even further ahead of the crypto trend, Strategy (NASDAQ: MSTR) is more of a Bitcoin investment vehicle than a software developer nowadays. The company formerly known as Microstrategy has built a $61.7 billion Bitcoin portfolio with mostly borrowed money and shareholder funds. The Trump administration included crypto support in its campaign messages, and is indeed taking some industry-friendly steps already. There is now an official Strategic Bitcoin Reserve and a smaller Digital Asset Stockpile for other cryptocurrencies. Also, this iteration of the Securities and Exchange Commission looks ready to approve crypto-investing policies that the previous group kept kicking down the road. These political twists have to be good news for Bitcoin owners. Bitcoin-based investments used to be pure high-risk ideas, with sky-high beta values indicating massive volatility. That's no longer the case. Last year's ETF introductions and Bitcoin halving event threw some cold water on the cryptocurrency's volatility. Recently, Bitcoin ETFs have explored negative beta values, suggesting that this asset often moves in the opposite direction of the American stock market. That's taking the hedging thesis to a new extreme. Low beta values signify below-average price swings, while negative ones belong to investments that often move in direct opposition to the stock market. Long story short, there are many reasons to treat Bitcoin as an effective market hedge nowadays. The largest and oldest cryptocurrency can counterbalance many quirks in the American and global economy. Tech giants face the crypto conversation Inspired by these newfound stability qualities, activist investors have been asking some of the world's largest tech titans to buy some Bitcoin. Actually, not even that -- two different groups asked Microsoft (NASDAQ: MSFT) and Meta Platforms (NASDAQ: META) to just look into the idea. The proxy statements for both companies' annual shareholder meetings asked the board of directors to simply assess whether some Bitcoin exposure would be good for shareholders. As usual, Meta and Microsoft opposed these proposals. Microsoft's board recommended shareholders to vote against the measure, since the company already considers every cash management option -- including Bitcoin. Meta's board offered the same recommendation, citing its own comprehensive review of every reasonable idea. "While we are not opining on the merits of cryptocurrency investments compared to other assets, we believe the requested assessment is unnecessary given our existing processes to manage our corporate treasury," the recommendation ended. The votes are in -- and they're brutal Putting these Bitcoin proposals on the proxy statements didn't exactly change the game. The policy assessment requests got almost no support from shareholders. Microsoft's vote results were published in December 2024. Every shareholder proposal fell short of approval. The top performers got more than 30% approval ratings, but the Bitcoin topic fell between the cracks with just 0.55% "yea" votes. It was Meta's turn to vote on this stuff last Wednesday. A few proposals got the thumbs-up vote from at least 20% of shareholders, but the Bitcoin assessment was barely there. Approval rating: 0.08%. I mean, that's barely a shadow of a forgotten thought experiment. Reading between the voting lines At first glance, the overwhelming downvotes look like a total condemnation of Bitcoin as a hedging instrument. Fractions of a single percent simply don't show any real support for that idea. Take your Bitcoin and go home, dear activist investors. But there's more nuance to this situation. The negative company board recommendations came with careful language explaining that they're already thinking about this stuff anyway. Therefore, some investors may simply be satisfied with the ordinary review of financial management options -- if Bitcoin ever becomes a no-brainer wealth management holding, the strategic committees of the world's largest tech giants will surely figure it out and take action. At the same time, there's some truth to the anti-Bitcoin sentiment seen in these lopsided votes. The vast majority of Microsoft and Meta Platforms shares are held by institutional investors, led by ETF managers and retirement fund portfolios. Getting the first hint of Bitcoin investment support from those groups should drive Bitcoin prices dramatically higher in a hurry -- but the mega-investors aren't ready to make that commitment yet. All in all, I find the lack of investor support surprising but the proposals may have served a worthwhile purpose anyhow. Just asking people to think about Bitcoin as a long-term investment could have positive long-term effects. In this early stage, lots of investors just haven't taken Bitcoin seriously yet. If each vote proposal got just one more financial heavyweight to start thinking in those terms, I'd say it was worth the mountains of proxy-filing paperwork. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of June 2, 2025 Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin, Block, Goldman Sachs Group, Meta Platforms, Microsoft, and Tesla. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
