Zacks Equity Research
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In the latest close session, TJX (TJX) was up +1.02% at $123.38. The stock’s performance was ahead of the S&P 500’s daily gain of 0.52%. Meanwhile, the Dow gained 1%, and the Nasdaq, a tech-heavy index, added 0.52%.
Shares of the parent of T.J. Maxx, Marshalls and other stores have depreciated by 3.88% over the course of the past month, underperforming the Retail-Wholesale sector’s gain of 2.37%, and the S&P 500’s gain of 5.95%.
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Analysts and investors alike will be keeping a close eye on the performance of TJX in its upcoming earnings disclosure. In that report, analysts expect TJX to post earnings of $1 per share. This would mark year-over-year growth of 4.17%. Meanwhile, our latest consensus estimate is calling for revenue of $14.08 billion, up 4.55% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.46 per share and revenue of $58.81 billion, indicating changes of +4.69% and +4.35%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, TJX boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, TJX is currently exchanging hands at a Forward P/E ratio of 27.37. This indicates a premium in contrast to its industry’s Forward P/E of 20.99.
Meanwhile, TJX’s PEG ratio is currently 2.89. 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. TJX’s industry had an average PEG ratio of 2.81 as of yesterday’s close.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 36% of all industries, numbering over 250.
