The TJX Companies, Inc. (TJX Quick QuoteTJX - Free Report) is slated to report first-quarter fiscal 2018 results on May 16, before the opening bell. This leading off-price retailer’s earnings have outpaced the Zacks Consensus Estimate for nine straight quarters now, with a trailing four-quarter average beat of 5.3%.

The current Zacks Consensus Estimate for the quarter under review has been stable in the last 30 days, and is currently pegged at 79 cents, up 3.9% from 76 cents reported in the year-ago quarter. Analysts polled by Zacks expect revenues of $7,847 million, compared with $7,542.4 million in the prior-year period. Well, the obvious question that comes to mind is whether TJX Companies will be able to post a positive earnings surprise in the quarter.

Let’s delve deeper into how things are shaping up for this announcement.

What Does the Zacks Model Unveil?

Our proven model shows that TJX Companies is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Notably, TJX Companies has a favorable combination of the above two conditions. The company has an Earnings ESP of +1.27% as the Most Accurate estimate of 80 cents is pegged higher than the Zacks Consensus Estimate of 79 cents. Moreover, the company has a Zacks Rank #3, making us confident of an earnings beat.

Factors Influencing the Quarter

TJX Companies is one of the few retailers that managed to stay afloat amid troubled waters of the retail sector. In fact, shares of TJX Companies have rallied 5.7% year to date, outperforming the Zacks categorized Retail – Discount & Variety industry’s gain of 1.7%, which  is currently placed at bottom 26% of the Zacks Classified Industries (190 out of 256). Also, most of the retailers are losing their market share to the online retailers as more and more buyers are opting for the convenience of buying through the internet.

In addition, the company is working on brand enhancing initiatives in the form of product innovation and marketing campaigns. It has also undertaken several initiatives to boost sales along with an aggressive store opening and eCommerce expansion strategies. As a result, its sales have outpaced the Zacks Consensus Estimate in eight of the past nine quarters.

Furthermore, TJX Companies forms part of the Retail-Wholesale sector that is currently placed at bottom 6% of the Zacks Classified sectors (15 out of 16). Per the latest Earnings Outlook, the earnings growth for the sector is estimated to decline 1.8%, despite an expected revenue growth of 3.3% in the fiscal first quarter. We note that the Zacks categorized Retail-Wholesale sector gained 17.8% over the past one year, almost in line with the S&P 500.

Stocks Poised to Beat Earnings Estimates

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

Best Buy Co., Inc. (BBY Quick QuoteBBY - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Home Depot, Inc. (HD Quick QuoteHD - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #2.

Lowe's Companies, Inc. (LOW Quick QuoteLOW - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3.

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