Here's Why TJX (TJX) Gained But Lagged the Market Today
TJX (TJX) closed the latest trading day at $110.55, indicating a +0.01% change from the previous session's end. The stock lagged the S&P 500's daily gain of 0.09%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.3%.
Coming into today, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 8.97% in the past month. In that same time, the Retail-Wholesale sector gained 1.99%, while the S&P 500 gained 3.38%.
The investment community will be paying close attention to the earnings performance of TJX in its upcoming release. The company's upcoming EPS is projected at $0.90, signifying a 5.88% increase compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.33 billion, showing a 4.45% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.09 per share and a revenue of $55.98 billion, representing changes of +8.78% and +3.25%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for TJX. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the past month, the Zacks Consensus EPS estimate has moved 0.03% higher. TJX is currently a Zacks Rank #3 (Hold).
With respect to valuation, TJX is currently being traded at a Forward P/E ratio of 27.02. This indicates a premium in contrast to its industry's Forward P/E of 21.41.
Also, we should mention that TJX has a PEG ratio of 2.96. 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 2.54 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 162, positioning it in the bottom 36% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
