Best Retail Stock to Own in August: TJX Companies

Core Viewpoint - TJX Companies Inc is expected to report strong second-quarter earnings, with historical performance indicating a positive trend for the stock in August [1][3]. Group 1: Earnings Performance - TJX is set to report its second-quarter results on August 21, and it is noted as one of the best-performing stocks in the S&P 500 for August, being the only retailer on the list [1]. - Over the past ten years, TJX has finished higher in nine of those years in August, averaging a gain of 4.4% [3]. - The stock has shown a year-over-year increase of over 31% and reached an all-time high of $115.34 on July 12 [3]. Group 2: Historical Earnings Trends - Historically, TJX has performed well post-earnings, finishing six of its last eight post-earnings sessions higher, including a 3.5% gain in May [5]. - The stock has averaged a price movement of 2.8% in the two years following earnings reports, regardless of direction [5]. Group 3: Volatility and Options Strategy - The stock's Schaeffer's Volatility Index (SVI) is at 18%, placing it in the low 22nd percentile of annual readings, indicating affordable premiums amid low volatility expectations [5]. - A premium-selling strategy may be advantageous, as TJX has a Schaeffer's Volatility Scorecard (SVS) of 19 out of 100, suggesting it has consistently experienced lower volatility than what its options have priced in [5].