TJX (TJX) ended the recent trading session at $125.43, demonstrating a +0.4% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 4.84%. At the same time, the Dow lost 3.98%, and the tech-heavy Nasdaq lost 5.97%.
Prior to today's trading, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 1.54% over the past month. This has outpaced the Retail-Wholesale sector's loss of 5.85% and the S&P 500's loss of 4.7% in that time.
The upcoming earnings release of TJX will be of great interest to investors. The company is forecasted to report an EPS of $0.90, showcasing a 3.23% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $12.97 billion, showing a 3.94% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.43 per share and a revenue of $58.75 billion, signifying shifts of +3.99% and +4.24%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for TJX. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, TJX holds a Zacks Rank of #3 (Hold).
From a valuation perspective, TJX is currently exchanging hands at a Forward P/E ratio of 28.19. This represents a premium compared to its industry's average Forward P/E of 20.66.
We can also see that TJX currently has a PEG ratio of 3.11. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. TJX's industry had an average PEG ratio of 2.58 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 157, finds itself in the bottom 37% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).
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