TJX (TJX) closed the most recent trading day at $144.10, moving +1.92% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.16%. Meanwhile, the Dow gained 0.44%, and the Nasdaq, a tech-heavy index, lost 0.76%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 0.16% outpaced the Retail-Wholesale sector's loss of 4.08% and lagged the S&P 500's gain of 1.14%.
Market participants will be closely following the financial results of TJX in its upcoming release. In that report, analysts expect TJX to post earnings of $1.21 per share. This would mark year-over-year growth of 6.14%. At the same time, our most recent consensus estimate is projecting a revenue of $14.82 billion, reflecting a 5.4% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $4.64 per share and a revenue of $60.31 billion, demonstrating changes of +8.92% and +7%, 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. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.35% higher. TJX is currently sporting a Zacks Rank of #2 (Buy).
Looking at its valuation, TJX is holding a Forward P/E ratio of 30.49. For comparison, its industry has an average Forward P/E of 23.31, which means TJX is trading at a premium to the group.
We can additionally observe that TJX currently boasts a PEG ratio of 3.14. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.54 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 32, putting it in the top 13% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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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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