The TJX Companies, Inc. (NYSE:TJX): What Does The Future Look Like?
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On 04 May 2019, The TJX Companies, Inc. (NYSE:TJX) released its earnings update. Generally, it seems that analyst expectations are fairly bearish, as a 6.8% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 7.5%. Currently with trailing-twelve-month earnings of US$3.1b, we can expect this to reach US$3.3b by 2020. Below is a brief commentary on the longer term outlook the market has for TJX Companies. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
View our latest analysis for TJX Companies
How will TJX Companies perform in the near future?
The view from 26 analysts over the next three years is one of 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$3.1b and the final forecast of US$3.7b by 2022, the annual rate of growth for TJX’s earnings is 6.8%. EPS reaches $3.22 in the final year of forecast compared to the current $2.47 EPS today. Margins are currently sitting at 7.9%, which is expected to expand to 8.1% by 2022.
Next Steps:
Future outlook is only one aspect when you're building an investment case for a stock. For TJX Companies, I've compiled three important factors you should further examine:
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!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
