TJX (TJX) ended the recent trading session at $153.42, demonstrating a -1.56% change from the preceding day's closing price. This change lagged the S&P 500's 0.55% gain on the day. Elsewhere, the Dow saw an upswing of 0.63%, while the tech-heavy Nasdaq appreciated by 0.91%.
The parent of T.J. Maxx, Marshalls and other stores's stock has dropped by 0.92% in the past month, falling short of the Retail-Wholesale sector's gain of 4.28% and the S&P 500's gain of 0.71%.
Market participants will be closely following the financial results of TJX in its upcoming release. The company is expected to report EPS of $1.38, up 12.2% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $17.4 billion, indicating a 6.43% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.67 per share and revenue of $60.01 billion. These totals would mark changes of +9.62% and +6.48%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 has moved 0.16% higher within the past month. At present, TJX boasts a Zacks Rank of #2 (Buy).
In terms of valuation, TJX is presently being traded at a Forward P/E ratio of 33.36. For comparison, its industry has an average Forward P/E of 29.71, which means TJX is trading at a premium to the group.
It's also important to note that TJX currently trades at a PEG ratio of 3.27. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Retail - Discount Stores industry had an average PEG ratio of 3.27.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 24, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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