TJX (TJX) closed at $61.34 in the latest trading session, marking a -1.56% move from the prior day. This change was narrower than the S&P 500's daily loss of 2.11%. At the same time, the Dow lost 1.54%, and the tech-heavy Nasdaq lost 0.3%.
Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 0.06% over the past month, outpacing the Retail-Wholesale sector's loss of 6.69% and the S&P 500's loss of 8.19% in that time.
Wall Street will be looking for positivity from TJX as it approaches its next earnings report date. The company is expected to report EPS of $0.80, down 4.76% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.27 billion, down 2.08% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.11 per share and revenue of $49.79 billion, which would represent changes of +9.12% and +2.55%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 remained stagnant. TJX is currently a Zacks Rank #3 (Hold).
In terms of valuation, TJX is currently trading at a Forward P/E ratio of 20.03. For comparison, its industry has an average Forward P/E of 20.84, which means TJX is trading at a discount to the group.
We can also see that TJX currently has a PEG ratio of 1.91. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 1.93 at yesterday's closing price.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 221, which puts it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow TJX in the coming trading sessions, be sure to utilize Zacks.com.
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