TJX (TJX) closed at $132.11 in the latest trading session, marking a +2.59% move from the prior day. This move outpaced the S&P 500's daily gain of 0.73%. Elsewhere, the Dow saw an upswing of 0.18%, while the tech-heavy Nasdaq appreciated by 1.21%.
Shares of the parent of T.J. Maxx, Marshalls and other stores have appreciated by 2.8% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 1.16%, and the S&P 500's gain of 0.47%.
Market participants will be closely following the financial results of TJX in its upcoming release. It is anticipated that the company will report an EPS of $1.01, marking a 5.21% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $14.07 billion, up 4.48% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.48 per share and revenue of $58.83 billion, indicating changes of +5.16% and +4.38%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 0.06% higher within the past month. Currently, TJX is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, TJX currently has a Forward P/E ratio of 28.77. This signifies a premium in comparison to the average Forward P/E of 22.5 for its industry.
Meanwhile, TJX's PEG ratio is currently 3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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The TJX Companies, Inc. (TJX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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