TJX (TJX) ended the recent trading session at $154.05, demonstrating a +1.78% change from the preceding day's closing price. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq lost 0.8%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 4.15% lagged the Retail-Wholesale sector's loss of 3.36% and the S&P 500's loss of 1.43%.
The upcoming earnings release of TJX will be of great interest to investors. The company's upcoming EPS is projected at $1.17, signifying a 6.36% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $15.12 billion, indicating a 5.02% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $5.17 per share and a revenue of $63.9 billion, demonstrating changes of +9.3% and +5.85%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.27% higher within the past month. Right now, TJX possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 29.28 right now. This signifies a premium in comparison to the average Forward P/E of 26.9 for its industry.
We can also see that TJX currently has a PEG ratio of 3.28. 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. As the market closed yesterday, the Retail - Discount Stores industry was having an average PEG ratio of 2.38.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. At present, this industry carries a Zacks Industry Rank of 39, placing it within the top 16% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).