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

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TJX (TJX - Free Report) closed at $134.41 in the latest trading session, marking a +1.3% move from the prior day. This move outpaced the S&P 500's daily gain of 0.66%. Elsewhere, the Dow gained 0.18%, while the tech-heavy Nasdaq added 1.05%.

Shares of the parent of T.J. Maxx, Marshalls and other stores have appreciated by 0.45% over the course of the past month, outperforming the Retail-Wholesale sector's loss of 4.61%, and lagging the S&P 500's gain of 0.55%.

Investors will be eagerly watching for the performance of TJX in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $1.33, marking a 3.91% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $15.81 billion, up 4.61% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $5.22 per share and revenue of $63.91 billion, indicating changes of +10.36% and +5.86%, respectively, compared to the previous year.

It is also important to note the recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term 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, 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. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, TJX possesses a Zacks Rank of #3 (Hold).

In the context of valuation, TJX is at present trading with a Forward P/E ratio of 25.42. This represents a premium compared to its industry average Forward P/E of 23.11.

It is also worth noting that TJX currently has a PEG ratio of 2.39. 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 was holding an average PEG ratio of 1.83 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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