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TJX (TJX) Rises But Trails Market: What Investors Should Know

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TJX (TJX - Free Report) closed at $124.97 in the latest trading session, marking a +0.22% move from the prior day. This move lagged the S&P 500's daily gain of 0.67%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.98%.

Coming into today, shares of the parent of T.J. Maxx, Marshalls and other stores had gained 3.86% in the past month. In that same time, the Retail-Wholesale sector gained 7.15%, while the S&P 500 gained 2.07%.

The investment community will be paying close attention to the earnings performance of TJX in its upcoming release. In that report, analysts expect TJX to post earnings of $1.15 per share. This would mark year-over-year growth of 2.68%. Meanwhile, our latest consensus estimate is calling for revenue of $16.19 billion, down 1.34% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for TJX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.37% higher within the past month. TJX is currently sporting a Zacks Rank of #3 (Hold).

Looking at its valuation, TJX is holding a Forward P/E ratio of 27.23. This represents a premium compared to its industry's average Forward P/E of 19.36.

We can additionally observe that TJX currently boasts a PEG ratio of 2.78. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Retail - Discount Stores industry held an average PEG ratio of 2.08.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 66, putting it in the top 27% 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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