TJX (TJX) Stock Drops Despite Market Gains: Important Facts to Note

TJX (TJX) ended the recent trading session at $124.16, demonstrating a -1.03% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 0.43%, while the tech-heavy Nasdaq appreciated by 0.09%.

The parent of T.J. Maxx, Marshalls and other stores's shares have seen an increase of 0.74% over the last month, not keeping up with the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37%.

Market participants will be closely following the financial results of TJX in its upcoming release. The company is expected to report EPS of $1.01, up 5.21% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $14.06 billion, indicating a 4.37% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.47 per share and revenue of $58.81 billion, indicating changes of +4.93% and +4.35%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for TJX. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

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 0.21% higher. Currently, TJX is carrying a Zacks Rank of #3 (Hold).

In the context of valuation, TJX is at present trading with a Forward P/E ratio of 28.05. This represents a premium compared to its industry average Forward P/E of 20.89.

It's also important to note that TJX currently trades at a PEG ratio of 2.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Retail - Discount Stores was holding an average PEG ratio of 2.76 at yesterday's closing price.

The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 90, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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