Down Over 20% This Year, the TJX Earnings Report Drops Soon

T.J. Maxx's parent company will report earnings on May 18

facebook X logo linkedin


TJX Companies Inc (NYSE:TJX) is an off-price retailer of apparel and home fashions in the U.S. and worldwide. TJX stores operate under the T.J. Maxx, T.K. Maxx, Marshalls, HomeGoods, Sierra, Winners, and Homesense brands names.

TJX is preparing for its first-quarter earnings report, due out on Wednesday, May 18. Most recently, TJX reported an EPS (earnings per share) of $0.78 for its fourth quarter of fiscal 2022. Wall Street is expecting a drop in earnings reported for its first quarter, down to $0.61 per share in its upcoming earnings report.

The stock has seen a mixed post-earnings response during the past two years, enjoying positive next-day returns half the time, and averaging a swing of 4.4%, regardless of direction. This time around, the options pits are pricing in a 7.6% move for the following session. 

Analysts are incredibly bullish on the stock ahead of the event. Of the 16 in coverage, 13 say "strong buy." Plus, its 12-month consensus price target of $77.76 is a solid 31.5% premium to last night's close.

The stock has lost 22% in 2022, and has shed nearly 19% in the past 12 months. The equity managed to briefly break out past a recent ceiling at the $64 level in mid-April, though this rally was swiftly rejected by the 120-day moving average. On the other hand, the $59 level has helped contain some of this volatile price action. 

tjx chart may 10

TJX Companies offers a decent dividend yield of 2.00% with forward dividend of $1.18. The retailer also reported a 51.1% increase in revenues and a 3,528.6% increase in net income for fiscal 2022, signaling a strong recovery after the company reported a 23% decrease in revenues and a 97.3% decrease in net income for fiscal 2021. In addition, TJX is estimated to grow revenues by 8.8% and earnings by 10.9% for fiscal 2023, as well as increase revenues by 5.9% and earnings by 13.6% for fiscal 2024.

However, TJX stock trades at a forward price-earnings ratio of 19.30 and a price-sales ratio of 1.55, which are relatively high figures considering the business’ top- and bottom-line growth rates. Moreover, the retailer also hold $6.23 billion in cash and $12.51 billion in total debt. Overall, TJX stock continues to be somewhat overvalued due to the business’s slow growth rate and weak balance sheet.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI