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

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TJX (TJX - Free Report) closed at $117.40 in the latest trading session, marking a +0.55% move from the prior day. The stock's change was more than the S&P 500's daily gain of 0.47%. On the other hand, the Dow registered a gain of 0.79%, and the technology-centric Nasdaq increased by 0.28%.

The the stock of parent of T.J. Maxx, Marshalls and other stores has fallen by 0.92% in the past month, lagging the Retail-Wholesale sector's gain of 3.09% and the S&P 500's gain of 3.48%.

The investment community will be paying close attention to the earnings performance of TJX in its upcoming release. The company is forecasted to report an EPS of $1.09, showcasing a 5.83% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $13.98 billion, indicating a 5.37% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and revenue of $56.19 billion, which would represent changes of +10.37% and +3.64%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, TJX possesses a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that TJX has a Forward P/E ratio of 28.13 right now. For comparison, its industry has an average Forward P/E of 20.59, which means TJX is trading at a premium to the group.

Also, we should mention that TJX has a PEG ratio of 2.95. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Retail - Discount Stores industry currently had an average PEG ratio of 2.38 as of yesterday's close.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 162, which puts it in the bottom 36% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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