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TJX (TJX) Outpaces Stock Market Gains: What You Should Know

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TJX (TJX - Free Report) closed the most recent trading day at $66.83, moving +1.43% from the previous trading session. The stock outpaced the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.12%, and the Nasdaq, a tech-heavy index, added 0.04%.

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, our latest consensus estimate is calling for revenue of $12.27 billion, down 2.08% from the prior-year quarter.

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.

Investors should also note any recent changes to analyst estimates for TJX. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 remained stagnant. TJX currently has a Zacks Rank of #4 (Sell).

In terms of valuation, TJX is currently trading at a Forward P/E ratio of 21.18. For comparison, its industry has an average Forward P/E of 21.09, which means TJX is trading at a premium to the group.

Also, we should mention that TJX has a PEG ratio of 2.02. 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 industry currently had an average PEG ratio of 1.95 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 230, putting it in the bottom 9% 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.

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