The latest trading session saw TJX (TJX) ending at $125.71, denoting a +1.4% adjustment from its last day's close. The stock's performance was behind the S&P 500's daily gain of 2.51%. Elsewhere, the Dow saw an upswing of 2.66%, while the tech-heavy Nasdaq appreciated by 2.71%.
Shares of the parent of T.J. Maxx, Marshalls and other stores witnessed a gain of 3.66% over the previous month, beating the performance of the Retail-Wholesale sector with its loss of 6.97% and the S&P 500's loss of 8.86%.
The investment community will be closely monitoring the performance of TJX in its forthcoming earnings report. The company's upcoming EPS is projected at $0.90, signifying a 3.23% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $12.97 billion, indicating a 3.94% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.43 per share and a revenue of $58.75 billion, signifying shifts of +3.99% and +4.24%, respectively, from the last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for TJX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. At present, TJX boasts a Zacks Rank of #3 (Hold).
Looking at valuation, TJX is presently trading at a Forward P/E ratio of 27.98. This represents a premium compared to its industry's average Forward P/E of 21.15.
We can additionally observe that TJX currently boasts a PEG ratio of 3.08. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.64 as trading concluded yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 164, putting it in the bottom 34% 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.
To follow TJX in the coming trading sessions, be sure to utilize 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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