In the latest close session, TJX (TJX) was down 1.72% at $157.48. The stock trailed the S&P 500, which registered a daily gain of 0.26%. On the other hand, the Dow registered a gain of 0.24%, and the technology-centric Nasdaq increased by 0.36%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 4.81% lagged the Retail-Wholesale sector's gain of 7.33% and the S&P 500's gain of 5.98%.
The investment community will be closely monitoring the performance of TJX in its forthcoming earnings report. On that day, TJX is projected to report earnings of $1 per share, which would represent year-over-year growth of 8.7%. In the meantime, our current consensus estimate forecasts the revenue to be $13.94 billion, indicating a 6.3% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.06 per share and revenue of $63.6 billion, which would represent changes of +6.98% and +5.35%, respectively, from the prior year.
Investors should also take note of any recent adjustments 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 business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, TJX possesses a Zacks Rank of #3 (Hold).
In the context of valuation, TJX is at present trading with a Forward P/E ratio of 31.69. This denotes a premium relative to the industry average Forward P/E of 30.1.
Also, we should mention that TJX has a PEG ratio of 3.68. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Retail - Discount Stores industry stood at 3.05 at the close of the market yesterday.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).