TJX (TJX) ended the recent trading session at $159.26, demonstrating a -1.47% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 1.66%. Elsewhere, the Dow gained 1.19%, while the tech-heavy Nasdaq added 2.78%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 6.79% outpaced the Retail-Wholesale sector's gain of 0.61% and the S&P 500's loss of 1.49%.
Market participants will be closely following the financial results of TJX in its upcoming release. The company is expected to report EPS of $1.18, up 7.27% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $15.13 billion, indicating a 5.03% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $5.17 per share and a revenue of $63.91 billion, indicating changes of +9.3% and +5.85%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for TJX. 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.07% higher. TJX currently has a Zacks Rank of #2 (Buy).
Looking at its valuation, TJX is holding a Forward P/E ratio of 31.25. Its industry sports an average Forward P/E of 31.25, so one might conclude that TJX is trading at no noticeable deviation comparatively.
Meanwhile, TJX's PEG ratio is currently 3.5. 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. The Retail - Discount Stores industry currently had an average PEG ratio of 2.83 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 13% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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The TJX Companies, Inc. (TJX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).