The TJX Companies, Inc. (TJX) Stock: The Numbers Look Good?

Analysts at Argus upped their rating on shares of The TJX Companies, Inc. (NYSE:TJX) from Hold to Buy in their opinion released on November 29. Telsey Advisory Group analysts again handed out a Market Perform rating to TJX stock but they lifted target price for the shares in a flash note to investors on November 21. The price target has been raised from $55 to $51. Telsey Advisory Group, analysts launched coverage of TJX stock with a Market Perform rating, according to their flash note to investors on November 21. Analysts at Citigroup are sticking to their Buy recommendation. However, on October 16, they lifted target price for these shares to $125 from $111. Analysts at Citigroup, made their first call for the stock with a Buy rating, according to a research note that dated back to October 16.

By watching the trading activity of corporate insiders, it will become easier to get a sense of The TJX Companies, Inc. (NYSE:TJX)’s prospects. The earliest insider trade took place on 05/23/2018. Lane Amy B parted with a total of 1 thousand shares of company at average share price of $44.03. The total for the sales was set at $44.03 thousand. After this transaction, the Director account balance stood at 31 thousand shares. The stock grew 5.53 percent since that insider sale. On 05/23/2018, Sherr Richard, SEVP, Group President, sold 4.44 thousand shares at a price per share of $44.02. This removed 195.45 thousand shares from the insider’s fortune and the stock saw a 5.55 percent rally in value since the news became public. This transaction left 180.99 thousand shares in the SEVP, Group President account. On 04/19/2018, SEVP, CFO Goldenberg Scott performed a sale transaction worth $1.36 million. This sale at $41.51 each has eliminated 32.69 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 11.94 percent increase since the transaction was reported. The insider now is left with 172.05 thousand shares remaining in the account. Sherr Richard, who performs the SEVP, Group President job, sold 40 thousand shares for $1.67 million. The disposal occurred on 04/18/2018 was priced at $41.84 per share. The share price soared 11.06 percent since the reporting date. Sherr Richard now left with a stake of 185.43 thousand TJX stock worth $8.62 million after the insider selling.

The TJX Companies, Inc. (TJX) is expected to jump by 17.26 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $65-month high price target. This represents a whopping 39.91 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $55, which represents a return potential of 18.38 percent when compared to the closing price of the stock of $46.46 on Thursday, December 06. The lowest price target for the stock is $24 — slightly more than -48.34 percent from TJX’s current share price.

The shares are currently floating around the first support level of $45.85. Below this, the next support is placed in the zone of $45.24. Till the time, the TJX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 33.01 on daily chart, which may remain a cause for comfort. If the price breaks below $45.24 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $46.96 mark may result into a pull-back move towards $47.47 level.

TJX shares dropped -0.71 points or -1.51 percent on Thursday to $46.46 with a heavy trade volume of 11.635 million shares. After opening the session at $46.7, the shares went as high as $46.855 and as low as $45.74, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $57.9 billion and now has 1.25 billion shares outstanding. The TJX Companies, Inc. (TJX) stock has lost -15.74 percent of market value in 21 trading days.

TJX stock has a trailing 3-year beta of 0.62, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.37 a share in the trailing twelve months. The stock’s value has surged 21.53 percent year to date (YTD) against a rise of 22.91 percent in 12 month’s time. The company’s shares still trade -17.97 percent away from its 1-year high of $56.64 and 27.6 percent up from 52-week low of $36.41. The average consensus rating on the company is 2, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of The TJX Companies, Inc. (TJX) are trading at a P/E ratio of 19.19 times earnings reported for the past 12 months. The industry TJX operates in has an average P/E of 27. Its P/E ratio went as low as 19.49X and as high as 21.47 over the 5-year span. Further, it is sporting a 1.49 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.29. 28.6 percent is the gross profit margin for The TJX Companies, Inc. and operating margin sits at 10.1 percent. Along with this, the net profit margin is 7.2 percent.

TJX will be showing off its Q4 earnings on February 27. Analysts are forecasting revenue to climb 0.3 percent to $11B in the next fiscal quarter, while earnings are seen soaring by nearly 4.62 percent to $0.68 per share. History has shown that shares in The TJX Companies, Inc. have gone up on 24 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.61 per share, in line with the $0.61, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $9.83B, better than the $9.49B analysts expected. Earnings are estimated to increase by 12.8 percent this year, 6.42 percent next year and continue to increase by 11.39 percent annually for the next 5 years.