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TJX (TJX) Gains As Market Dips: What You Should Know

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In the latest trading session, TJX (TJX - Free Report) closed at $113.03, marking a +0.07% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 1.86%. On the other hand, the Dow registered a loss of 0.9%, and the technology-centric Nasdaq decreased by 2.76%.

The parent of T.J. Maxx, Marshalls and other stores's stock has dropped by 3.01% in the past month, falling short of the Retail-Wholesale sector's loss of 0.23% and the S&P 500's gain of 1.01%.

The upcoming earnings release of TJX will be of great interest to investors. It is anticipated that the company will report an EPS of $1.09, marking a 5.83% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $13.98 billion, reflecting a 5.37% rise from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.15 per share and a revenue of $56.19 billion, representing changes of +10.37% and +3.64%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TJX. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. TJX is currently a Zacks Rank #3 (Hold).

Looking at its valuation, TJX is holding a Forward P/E ratio of 27.21. This valuation marks a premium compared to its industry's average Forward P/E of 19.69.

It's also important to note that TJX currently trades at a PEG ratio of 2.85. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TJX's industry had an average PEG ratio of 2.31 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 72, putting it in the top 29% 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.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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