Examining the Future: TJX Companies's Earnings Outlook

TJX Companies TJX is preparing to release its quarterly earnings on Wednesday, 2024-11-20. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect TJX Companies to report an earnings per share (EPS) of $1.10.

TJX Companies bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

In the previous earnings release, the company beat EPS by $0.04, leading to a 1.02% drop in the share price the following trading session.

Here's a look at TJX Companies's past performance and the resulting price change:

Market Performance of TJX Companies's Stock

Shares of TJX Companies were trading at $119.67 as of November 18. Over the last 52-week period, shares are up 33.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on TJX Companies

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on TJX Companies.

TJX Companies has received a total of 16 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $132.56, the consensus suggests a potential 10.77% upside.

Comparing Ratings Among Industry Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Ross Stores, Burlington Stores and Gap, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Neutral trajectory for Ross Stores, with an average 1-year price target of $174.77, indicating a potential 46.04% upside.
• As per analysts' assessments, Burlington Stores is favoring an Outperform trajectory, with an average 1-year price target of $309.85, suggesting a potential 158.92% upside.
• The consensus outlook from analysts is an Neutral trajectory for Gap, with an average 1-year price target of $27.17, indicating a potential 77.3% downside.

Overview of Peer Analysis

The peer analysis summary presents essential metrics for Ross Stores, Burlington Stores and Gap, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

TJX Companies ranks at the top for Revenue Growth and Gross Profit among its peers. It also has the highest Return on Equity.

All You Need to Know About TJX Companies

TJX Companies is the leading off-price retailer of apparel, accessories, and home merchandise in the United States. The firm leverages its more than 21,000 global vendor relationships to procure and sell brand-name merchandise at prices 20%-60% cheaper than conventional retail channels. TJX opportunistically purchases excess inventory that stems from manufacturing overruns and retail closeout sales. The off-price retailer disperses its vast and disparate merchandise across its 5,000 global stores, creating a treasure-hunt shopping experience for consumers. Over three quarters of TJX's sales are derived from the United States, primarily via the T.J. Maxx, Marshalls, and HomeGoods banners. About 10% of sales are from Canada and 12% from Europe and Australia.

TJX Companies's Economic Impact: An Analysis

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: TJX Companies displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 5.57%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: TJX Companies's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.16% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): TJX Companies's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 14.38%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 3.65%, the company showcases effective utilization of assets.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.63, caution is advised due to increased financial risk.

To track all earnings releases for TJX Companies visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.