Wall Street Analysts Think TJX (TJX) Is a Good Investment: Is It?

Brokerage Recommendations and Zacks Rank - Brokerage firms tend to have a strong positive bias in their stock recommendations, with five "Strong Buy" recommendations for every "Strong Sell" recommendation [3] - The Average Brokerage Recommendation (ABR) for TJX is 1.26, which approximates between Strong Buy and Buy, based on 23 brokerage firms' recommendations [10] - 87% of the 23 recommendations for TJX are Strong Buy, representing the majority of the ABR [18] Earnings Estimate Revisions and Zacks Rank - Earnings estimate revisions are at the core of the Zacks Rank, showing a strong correlation with near-term stock price movements [2] - The Zacks Consensus Estimate for TJX's current year earnings has remained unchanged at $4.18 over the past month [8] - TJX currently holds a Zacks Rank 3 (Hold), influenced by the unchanged consensus estimate and other earnings-related factors [9] Differences Between ABR and Zacks Rank - The ABR is based solely on brokerage recommendations and is displayed in decimals, while the Zacks Rank is a quantitative model based on earnings estimate revisions and displayed in whole numbers [12] - The Zacks Rank is always timely due to continuous revisions by brokerage analysts, whereas the ABR may not be up-to-date [7] - The Zacks Rank maintains a balanced distribution across its five ranks, applied proportionately to all stocks with current-year earnings estimates [13] Investment Considerations for TJX - Analysts' steady views on TJX's earnings prospects, indicated by an unchanged consensus estimate, suggest the stock may perform in line with the broader market in the near term [14] - While the ABR suggests buying TJX, relying solely on brokerage recommendations may not be advisable due to their limited success in guiding investors toward stocks with price appreciation potential [11] - Validating the Zacks Rank with the ABR could be a more reliable approach for making profitable investment decisions [16]