TJX (TJX) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, TJX (TJX) closed at $74.63, marking a -0.67% move from the previous day. This change lagged the S&P 500's daily gain of 0.3%. Meanwhile, the Dow gained 0.24%, and the Nasdaq, a tech-heavy index, added 0.34%.
Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 3.01% over the past month, outpacing the Retail-Wholesale sector's loss of 3.15% and lagging the S&P 500's loss of 1.21% in that time.
TJX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.71, up 4.41% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.82 billion, up 3.62% from the year-ago period.
TJX's full-year Zacks Consensus Estimates are calling for earnings of $3.51 per share and revenue of $53.17 billion. These results would represent year-over-year changes of +12.86% and +6.48%, respectively.
Investors should also note any recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, the Zacks Consensus EPS estimate has moved 1.1% lower. TJX is currently a Zacks Rank #3 (Hold).
In terms of valuation, TJX is currently trading at a Forward P/E ratio of 21.43. For comparison, its industry has an average Forward P/E of 21.07, which means TJX is trading at a premium to the group.
Investors should also note that TJX has a PEG ratio of 2.04 right now. 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. TJX's industry had an average PEG ratio of 1.96 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 212, which puts it in the bottom 16% 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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The TJX Companies, Inc. (TJX) : Free Stock Analysis Report
