TJX (TJX) is a Top-Ranked Growth Stock: Should You Buy?

Core Insights - Zacks Premium provides tools for investors to enhance their stock market engagement and confidence, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to help investors identify stocks with the potential to outperform the market in the short term [1] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with A being the highest score indicating better chances of outperformance [2] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - The Growth Score emphasizes a company's financial health and future growth potential based on earnings and sales projections [2] - The Momentum Score assesses trends in stock prices and earnings estimates to identify favorable investment opportunities [3] - The VGM Score combines all three Style Scores to provide a comprehensive evaluation of stocks based on value, growth, and momentum [4] Zacks Rank and Style Scores Interaction - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in stock selection, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5] - To maximize returns, investors should focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [6] - Stocks with lower ranks, even with high Style Scores, may still face downward price trends due to negative earnings outlooks [6] Company Spotlight: TJX Companies, Inc. - TJX is a leading off-price retailer with approximately 4,900 stores across nine countries and five e-commerce sites, offering a wide range of apparel and home fashions [7] - The company holds a Zacks Rank of 3 (Hold) and a VGM Score of B, indicating potential for growth [7] - TJX is projected to achieve year-over-year earnings growth of 8.8% for the current fiscal year, supported by a Growth Style Score of B [8] - Recent analyst revisions have increased the earnings estimate for fiscal 2025, with the Zacks Consensus Estimate rising to $4.09 per share [8]