TJX (TJX) Stock Sinks As Market Gains: Here's Why
TJX (TJX) closed the most recent trading day at $91.71, moving -1.15% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.18%. Meanwhile, the Dow experienced a rise of 0.07%, and the technology-dominated Nasdaq saw an increase of 0.1%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 4.38% over the past month. This has outpaced the Retail-Wholesale sector's gain of 2.45% and the S&P 500's gain of 2.75% in that time.
Investors will be eagerly watching for the performance of TJX in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.11, indicating a 24.72% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $16.14 billion, indicating a 11.15% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $3.75 per share and a revenue of $53.95 billion, demonstrating changes of +20.58% and +8.04%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TJX. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, TJX boasts a Zacks Rank of #3 (Hold).
With respect to valuation, TJX is currently being traded at a Forward P/E ratio of 24.73. This represents a premium compared to its industry's average Forward P/E of 23.74.
It's also important to note that TJX currently trades at a PEG ratio of 2.2. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TJX's industry had an average PEG ratio of 2.2 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 98, putting it in the top 39% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
