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TJX (TJX) Stock Sinks As Market Gains: What You Should Know

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TJX (TJX - Free Report) closed the most recent trading day at $52.17, moving -0.34% from the previous trading session. This change lagged the S&P 500's 0.08% gain on the day. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 0.38%.

Heading into today, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 4.45% over the past month, outpacing the Retail-Wholesale sector's loss of 4.9% and lagging the S&P 500's loss of 3.57% in that time.

TJX will be looking to display strength as it nears its next earnings release, which is expected to be August 20, 2019. The company is expected to report EPS of $0.63, up 6.78% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $9.89 billion, up 6.02% from the year-ago period.

TJX's full-year Zacks Consensus Estimates are calling for earnings of $2.63 per share and revenue of $41.33 billion. These results would represent year-over-year changes of +24.64% and +6.04%, respectively.

Investors might also notice recent changes to analyst estimates for TJX. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 has moved 0.03% lower. TJX currently has a Zacks Rank of #3 (Hold).

Digging into valuation, TJX currently has a Forward P/E ratio of 19.92. This represents a discount compared to its industry's average Forward P/E of 20.78.

Investors should also note that TJX has a PEG ratio of 1.83 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. TJX's industry had an average PEG ratio of 1.87 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 61, putting it in the top 24% of all 250+ industries.

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.

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