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

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TJX (TJX) closed at $61.64 in the latest trading session, marking a -1.61% move from the prior day. This change lagged the S&P 500's daily loss of 0.67%. At the same time, the Dow lost 1.23%, and the tech-heavy Nasdaq lost 0.05%.

Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 11.8% over the past month, outpacing the Retail-Wholesale sector's gain of 9.5% and the S&P 500's gain of 7.79% in that time.

Investors will be hoping for strength from TJX as it approaches its next earnings release. In that report, analysts expect TJX to post earnings of $0.68 per share. This would mark a year-over-year decline of 13.92%. Our most recent consensus estimate is calling for quarterly revenue of $12.09 billion, up 0.12% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.13 per share and revenue of $51.18 billion, which would represent changes of +9.82% and +5.41%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TJX. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. The Zacks Consensus EPS estimate has moved 1.39% lower within the past month. TJX is currently a Zacks Rank #3 (Hold).

Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 19.99 right now. Its industry sports an average Forward P/E of 20.46, so we one might conclude that TJX is trading at a discount comparatively.

It is also worth noting that TJX currently has a PEG ratio of 1.9. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 1.87 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 144, putting it in the bottom 43% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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