TJX (TJX) Gains But Lags Market: What You Should Know
TJX (TJX) closed the most recent trading day at $82.42, moving +0.68% from the previous trading session. The stock lagged the S&P 500's daily gain of 1.05%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 9.7%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 3.61% over the past month. This has lagged the Retail-Wholesale sector's gain of 11.69% and the S&P 500's gain of 6.27% 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 $0.80 per share, which would represent year-over-year growth of 2.56%. Our most recent consensus estimate is calling for quarterly revenue of $14.03 billion, up 1.28% from the year-ago period.
Any recent changes to analyst estimates for TJX should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TJX is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, TJX is holding a Forward P/E ratio of 26.26. This valuation marks a discount compared to its industry's average Forward P/E of 27.5.
Also, we should mention that TJX has a PEG ratio of 2.5. 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 2.56 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 213, putting it in the bottom 16% 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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