TJX (TJX) closed the most recent trading day at $141.69, moving -1.62% from the previous trading session. Elsewhere, the Dow saw a downswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.55%.
The parent of T.J. Maxx, Marshalls and other stores's stock has dropped by 0.35% in the past month, exceeding the Retail-Wholesale sector's loss of 0.4% and lagging the S&P 500's gain of 3.83%.
The upcoming earnings release of TJX will be of great interest to investors. The company's upcoming EPS is projected at $1.22, signifying a 7.02% increase compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $14.82 billion, up 5.4% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.64 per share and a revenue of $60.31 billion, indicating changes of +8.92% and +7%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TJX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.13% upward. Right now, TJX possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 31.03 right now. This denotes a premium relative to the industry average Forward P/E of 25.95.
Meanwhile, TJX's PEG ratio is currently 3.19. 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 2.83 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 250 industries.
The Zacks Industry Rank is ordered 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.
You can find more information on all of these metrics, and much 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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