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The TJX Companies Inc.(TJX - Analyst Report) is set to report third-quarter fiscal 2014 results on Nov 19. Last quarter, it posted a positive surprise of 4.8%. Let us see how things are shaping up for this announcement.

Factors to be Considered this Quarter

At the investor day held last month, TJX Companies raised the third-quarter earnings guidance following better-than-expected comps for the past few months. TJX now expects third-quarter earnings to range between 84 cents–85 cents versus the original guidance of 69 cents to 72 cents. TJX expects sales growth of 6%–7% and annual earnings growth of 10% to 13% through 2017. Management expects to continue its aggressive store expansion and also raised its  store count targets for the next three years.

We are encouraged by the optimistic outlook and strong comps of the off-price retailer. Moreover, the newly launched official website of TJX has proved to be a great success and management plans to put greater focus on online sales during the coming quarters. However, there is a possibility of pressured margins in the coming quarter as the discount retailer will not be able to raise prices in the face of rising input costs. Moreover, reduced discretionary spending by consumers amid high taxes and slow job growth may offset the strategic initiatives of TJX to boost sales.

Earnings Whispers?

Our proven model does not conclusively show that TJX is likely to beat earnings this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 to surpass earnings estimates. However, that is not the case here due to the following factors:

Zacks ESP: ESP for TJX is 0.00% .

Zacks Rank:TJX Companies’ Zacks Rank #2 (Buy) when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with Zacks Ranks #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Best Buy Co., Inc.(BBY - Analyst Report), with Earnings ESP of +9.09% and a Zacks Rank #1 (Strong Buy).

TiVo Inc.(TIVO - Analyst Report), with Earnings ESP of +16.67% and a Zacks Rank #2 (Buy).

Trina Solar Limited (TSL - Snapshot Report), with Earnings ESP of +77.78% and a Zacks Rank #2 (Buy).

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