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TJX (TJX) Outpaces Stock Market Gains: What You Should Know

TJX (TJX) closed the most recent trading day at $78.36, moving +1.89% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.44%. Elsewhere, the Dow gained 1.26%, while the tech-heavy Nasdaq added 5.21%.

Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 0.26% over the past month, lagging the Retail-Wholesale sector's gain of 2.17% and the S&P 500's gain of 2.28% in that time.

Investors will be hoping for strength from TJX as it approaches its next earnings release. On that day, TJX is projected to report earnings of $0.71 per share, which would represent year-over-year growth of 4.41%. Meanwhile, our latest consensus estimate is calling for revenue of $11.82 billion, up 3.62% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.52 per share and revenue of $53.17 billion. These totals would mark changes of +13.18% and +6.48%, respectively, from last year.

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It is also important to note the recent changes to analyst estimates for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.32% higher. TJX is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 21.87 right now. For comparison, its industry has an average Forward P/E of 21.41, which means TJX is trading at a premium to the group.

Meanwhile, TJX's PEG ratio is currently 2.08. 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. Retail - Discount Stores stocks are, on average, holding a PEG ratio of 1.99 based on yesterday's closing prices.

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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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report

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Zacks Investment Research