Wall Street Bulls Look Optimistic About TJX (TJX): Should You Buy?

Core Viewpoint - Brokerage recommendations, particularly for TJX, suggest a strong buy sentiment, but reliance solely on these recommendations may not be prudent due to potential biases and misalignment with retail investors' interests [2][4][9]. Brokerage Recommendations for TJX - TJX has an average brokerage recommendation (ABR) of 1.26, indicating a consensus between Strong Buy and Buy, with 20 out of 23 recommendations classified as Strong Buy, representing 87% [2]. - Despite the favorable ABR, studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with significant price appreciation potential [4][5]. Comparison with Zacks Rank - Zacks Rank, a proprietary stock rating tool, categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, showing a strong correlation with near-term stock price movements [7][10]. - The ABR is calculated solely from brokerage recommendations and may not be up-to-date, while Zacks Rank reflects timely earnings estimate revisions, making it a more reliable indicator for future price movements [8][11]. Current Earnings Estimates for TJX - The Zacks Consensus Estimate for TJX remains unchanged at $4.18 for the current year, indicating steady analyst views on the company's earnings prospects [12]. - The unchanged consensus estimate has resulted in a Zacks Rank of 3 (Hold) for TJX, suggesting caution despite the Buy-equivalent ABR [13].