What Do Analysts Think About The TJX Companies Inc’s (NYSE:TJX) Future?
Since The TJX Companies Inc (NYSE:TJX) released its earnings in May 2018, the consensus outlook from analysts appear fairly confident, with profits predicted to increase by 10.34% next year compared with the past 5-year average growth rate of 6.96%. Presently, with latest-twelve-month earnings at US$2.79b, we should see this growing to US$3.08b by 2019. Below is a brief commentary on the longer term outlook the market has for TJX Companies. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
See our latest analysis for TJX Companies
How is TJX Companies going to perform in the near future?
The longer term expectations from the 25 analysts of TJX is tilted towards the positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of TJX’s earnings growth over these next few years.
From the current net income level of US$2.61b and the final forecast of US$3.23b by 2021, the annual rate of growth for TJX’s earnings is 6.27%. EPS reaches $6 in the final year of forecast compared to the current $4.1 EPS today. The primary reason for earnings growth is due to cost-cutting initiatives, since top-line is predicted to rise at a slower pace than earnings. In 2021, TJX’s profit margin will have expanded from 7.27% to 7.63%.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For TJX Companies, there are three important aspects you should further research:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is TJX Companies worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether TJX Companies is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of TJX Companies? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
