TJX (TJX) closed at $68.43 in the latest trading session, marking a +1.65% move from the prior day. This change outpaced the S&P 500’s 0.65% gain on the day.
Prior to today’s trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 3.39% over the past month. This has lagged the Retail-Wholesale sector’s gain of 4.83% and the S&P 500’s gain of 6.38% in that time.
TJX will be looking to display strength as it nears its next earnings release. On that day, TJX is projected to report earnings of $0.81 per share, which would represent year-over-year growth of 14.08%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.26 billion, up 21.19% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $48.18 billion, which would represent changes of +864.52% and +49.93%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TJX currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 22.53 right now. For comparison, its industry has an average Forward P/E of 22.12, which means TJX is trading at a premium to the group.
Also, we should mention that TJX has a PEG ratio of 2.15. 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 was holding an average PEG ratio of 2.15 at yesterday’s closing price.
The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 165, putting it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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