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TJX (TJX) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

TJX (TJX) closed the most recent trading day at $61.92, moving +0.54% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.49%. Elsewhere, the Dow gained 0.57%, while the tech-heavy Nasdaq added 0.67%.

Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 2.24% over the past month, lagging the Retail-Wholesale sector's gain of 4.11% and the S&P 500's gain of 3.03% in that time.

Wall Street will be looking for positivity from TJX as it approaches its next earnings report date. The company is expected to report EPS of $0.77, up 30.51% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.85 billion, up 6.54% from the year-ago period.

TJX's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $41.36 billion. These results would represent year-over-year changes of +24.64% and +6.13%, respectively.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TJX is currently a Zacks Rank #2 (Buy).

In terms of valuation, TJX is currently trading at a Forward P/E ratio of 23.4. This represents a premium compared to its industry's average Forward P/E of 23.14.

It is also worth noting that TJX currently has a PEG ratio of 2.2. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.12 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 62, which puts it in the top 25% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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