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TJX (TJX) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research

TJX (TJX) closed the most recent trading day at $52.84, moving -0.4% from the previous trading session. This move lagged the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.04%, while the tech-heavy Nasdaq added 0.32%.

Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 5.95% over the past month. This has outpaced the Retail-Wholesale sector's gain of 4.56% and the S&P 500's gain of 3.31% in that time.

Wall Street will be looking for positivity from TJX as it approaches its next earnings report date. On that day, TJX is projected to report earnings of $0.62 per share, which would represent year-over-year growth of 5.08%. Our most recent consensus estimate is calling for quarterly revenue of $9.89 billion, up 5.98% from the year-ago period.

TJX's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $41.33 billion. These results would represent year-over-year changes of +24.64% and +6.05%, respectively.

Any recent changes to analyst estimates for TJX should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TJX is currently a Zacks Rank #2 (Buy).

Investors should also note TJX's current valuation metrics, including its Forward P/E ratio of 20.2. Its industry sports an average Forward P/E of 21.04, so we one might conclude that TJX is trading at a discount comparatively.

We can also see that TJX currently has a PEG ratio of 1.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TJX in the coming trading sessions, be sure to utilize Zacks.com.


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