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TJX (TJX) Stock Sinks As Market Gains: Here's Why

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The most recent trading session ended with TJX (TJX - Free Report) standing at $123.42, reflecting a -0.33% shift from the previouse trading day's closing. The stock trailed the S&P 500, which registered a daily gain of 0.24%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq increased by 0.08%.

The the stock of parent of T.J. Maxx, Marshalls and other stores has risen by 0.43% in the past month, lagging the Retail-Wholesale sector's gain of 5.98% and the S&P 500's gain of 2.37%.

Market participants will be closely following the financial results of TJX in its upcoming release. The company plans to announce its earnings on February 26, 2025. The company is predicted to post an EPS of $1.15, indicating a 2.68% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $16.19 billion, down 1.34% from the year-ago period.

It is also important to note the recent changes to analyst estimates for TJX. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.37% increase. Right now, TJX possesses a Zacks Rank of #2 (Buy).

With respect to valuation, TJX is currently being traded at a Forward P/E ratio of 27.04. This represents a premium compared to its industry's average Forward P/E of 19.02.

It is also worth noting that TJX currently has a PEG ratio of 2.76. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores industry had an average PEG ratio of 2.08 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. Currently, this industry holds a Zacks Industry Rank of 31, positioning it in the top 13% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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