TJX (TJX) Gains But Lags Market: What You Should Know

·3-min read

TJX (TJX) closed the most recent trading day at $76.91, moving +0.47% from the previous trading session. This change lagged the S&P 500's 0.57% gain on the day. At the same time, the Dow added 0.43%, and the tech-heavy Nasdaq gained 0.33%.

Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 0.4% over the past month, lagging the Retail-Wholesale sector's gain of 0.86% and the S&P 500's gain of 1.72% in that time.

TJX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.71, up 4.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.82 billion, up 3.62% from the year-ago period.

TJX's full-year Zacks Consensus Estimates are calling for earnings of $3.52 per share and revenue of $53.17 billion. These results would represent year-over-year changes of +13.18% and +6.48%, respectively.

Investors might also notice recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 0.32% higher. TJX is currently a Zacks Rank #3 (Hold).

Investors should also note TJX's current valuation metrics, including its Forward P/E ratio of 21.77. Its industry sports an average Forward P/E of 21.58, so we one might conclude that TJX is trading at a premium comparatively.

It is also worth noting that TJX currently has a PEG ratio of 2.07. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 1.98 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 184, putting it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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