Pre-Earnings Check-In With TJX Companies

TJ Maxx parent TJX Companies Inc (NYSE:TJX) is scheduled to report second-quarter earnings before the open on Wednesday, Aug. 19. According to Zacks Research, analysts expect earnings of $1.18 per share on revenue of $15.14 billion, representing a 7.3% year-over-year increase in earnings alongside 5.1% revenue growth. Investors will be watching for updates on comparable-store sales, consumer spending trends, and the off-price retailer's outlook.

Options traders are pricing in a 5.1% post-earnings move, regardless of direction, which is nearly double TJX stock's average reaction of 2.6% over the last eight quarters. The shares have finished higher after six of the past eight reports, including a 5.7% gain in late May.

TJX is in the midst of a short-term pullback, though long-term support at the 260-day moving average appears to be keeping losses in check. Last seen trading at $151.57, the shares are far removed from their June 11 record high of $170.00. The stock is in "oversold" territory, however, per its 14-day Relative Strength Index (RSI) of 27.2, which often precedes a short-term bounce. 

Meanwhile, short-term options traders have been more bearish than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 1.04 ranks higher than 86% of readings from the past year.