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TJX (TJX) Stock Declines While Market Improves: Some Information for Investors

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TJX (TJX - Free Report) ended the recent trading session at $142.49, demonstrating a -1.27% change from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.06%. At the same time, the Dow added 0.17%, and the tech-heavy Nasdaq gained 0.39%.

Shares of the parent of T.J. Maxx, Marshalls and other stores witnessed a gain of 3.48% over the previous month, beating the performance of the Retail-Wholesale sector with its gain of 0.29%, and underperforming the S&P 500's gain of 3.94%.

The upcoming earnings release of TJX will be of great interest to investors. In that report, analysts expect TJX to post earnings of $1.21 per share. This would mark year-over-year growth of 6.14%. At the same time, our most recent consensus estimate is projecting a revenue of $14.75 billion, reflecting a 4.91% rise from the equivalent quarter last year.

TJX's full-year Zacks Consensus Estimates are calling for earnings of $4.58 per share and revenue of $59.39 billion. These results would represent year-over-year changes of +7.51% and +5.37%, respectively.

Any recent changes to analyst estimates for TJX should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. As of now, TJX holds a Zacks Rank of #2 (Buy).

In the context of valuation, TJX is at present trading with a Forward P/E ratio of 31.54. This represents a premium compared to its industry average Forward P/E of 22.88.

It's also important to note that TJX currently trades at a PEG ratio of 3.25. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Retail - Discount Stores industry had an average PEG ratio of 2.57 as trading concluded yesterday.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. With its current Zacks Industry Rank of 64, this industry ranks in the top 26% of all industries, numbering over 250.

The Zacks Industry Rank gauges the strength of our individual 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.

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


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