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Core Viewpoint - TJX Companies Inc reported strong second-quarter results, exceeding expectations with earnings of $1.10 on revenue of $14.4 billion, leading to a 4.9% increase in share price to $141.25 [1] Group 1: Financial Performance - TJX has consistently beaten earnings estimates for the past four quarters, with post-earnings gains in three instances [1] - The company raised its full-year earnings guidance to a range of $4.52 to $4.57 [1] Group 2: Stock Performance - TJX shares reached a record high of $144, surpassing the previous milestone set in May, and are up 16.4% year-to-date [2] - The stock has shown recovery from a pullback in June and continued gains from July [2] Group 3: Analyst Sentiment - A majority of analysts are optimistic about TJX's outlook, with 18 out of 21 firms rating the stock as a "buy" and the remaining three as "hold" [2] - J.P. Morgan Securities raised its price target for TJX to $148, adding to the positive sentiment [2] Group 4: Options Trading Activity - Options traders displayed high confidence, with 38,000 calls traded compared to 8,094 puts, marking 18 times the usual intraday volume [3] - The most popular contract is the August 150 call, with new positions being opened [3]

Core Viewpoint - TJX Cos. reported earnings and revenue that exceeded Wall Street expectations, leading to an increase in full-year guidance, indicating strong demand across its divisions despite tariff-related cost pressures [1][2][3]. Financial Performance - For fiscal 2026 second quarter, TJX's net income was $1.24 billion, or $1.10 per share, compared to $1.1 billion, or 96 cents per share, a year earlier [4]. - Net sales reached $14.40 billion, a 7% increase from $13.47 billion in the same period last year, with comparable sales growing 4%, surpassing Wall Street estimates of 3.2% [5][8]. Guidance Update - TJX raised its full-year fiscal 2026 earnings guidance to between $4.52 and $4.57 per share, up from the previous range of $4.34 to $4.43 per share [2]. - The company also increased its comparable sales expectations to a 3% rise, compared to the prior guidance of 2% to 3% [2]. Market Position - Analysts suggest that off-price retailers like TJX are better positioned to mitigate tariff costs due to their purchasing strategies, which involve acquiring excess merchandise after importation [6]. - Research notes from UBS and Morgan Stanley indicate that TJX is likely to gain market share from traditional department stores due to this advantage [6]. Investor Sentiment - Following the earnings report, TJX shares rose approximately 4% in premarket trading, reflecting positive investor sentiment [3]. - As of the previous close, TJX shares have increased over 11% this year [7].

Group 1 - The TJX Companies is expected to announce its fiscal second-quarter earnings on August 20, 2025, with analysts forecasting earnings of $1.01 per share and revenue of $14.16 billion, indicating a 4% year-over-year rise in earnings and a 5% increase in sales compared to the previous year [2][3] - The company has a market capitalization of $148 billion, with revenue of $57 billion over the past twelve months, operating profits of $6.3 billion, and net income of $4.8 billion [3] - Historical trends show that TJX stock has gained 65% of the time following earnings announcements, with a median one-day increase of 3.5% and a maximum observed gain of 7% [2][9] Group 2 - Positive one-day returns occurred approximately 65% of the time over the last five years, increasing to 73% when analyzing the last three years [9] - The median of the 13 positive returns is 3.5%, while the median of the 7 negative returns is -3.3% [9] - A strategy for traders is to analyze the correlation between short-term and intermediate-term returns post-earnings, which can help in making informed trading decisions [10]

Core Insights - TJX is well-positioned to maintain its earnings-beat streak in upcoming reports, having surpassed earnings estimates by an average of 4.13% in the last two quarters [1][2] Earnings Performance - For the most recent quarter, TJX reported earnings of $0.90 per share, slightly below the expected $0.92, resulting in a surprise of 2.22% [2] - In the previous quarter, TJX exceeded the consensus estimate of $1.16 per share by reporting $1.23, achieving a surprise of 6.03% [2] Earnings Estimates and Predictions - There has been a favorable change in earnings estimates for TJX, with a positive Earnings ESP of +1.13%, indicating analysts' bullish sentiment on its near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 2 (Buy) suggests a strong likelihood of another earnings beat [8] Statistical Insights - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [7]

Company Performance - TJX reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, but down from $0.93 per share a year ago, representing an earnings surprise of 2.22% [1] - The company posted revenues of $13.11 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.67% and up from $12.48 billion year-over-year [2] - Over the last four quarters, TJX has consistently surpassed consensus EPS and revenue estimates [2] Stock Outlook - TJX shares have increased approximately 11.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The current consensus EPS estimate for the upcoming quarter is $1.02 on revenues of $14.07 billion, and for the current fiscal year, it is $4.44 on revenues of $58.84 billion [7] Industry Context - The Retail - Discount Stores industry, to which TJX belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact TJX's stock performance [5][6]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with TJX being highlighted as a strong candidate due to its favorable growth metrics and Zacks Rank [2][9]. Group 1: Earnings Growth - Earnings growth is a critical factor for investors, with double-digit growth being particularly desirable as it indicates strong future prospects [4]. - TJX has a historical EPS growth rate of 49.6%, with a projected EPS growth of 4.1% for the current year, surpassing the industry average of 2.9% [5]. Group 2: Cash Flow Growth - Cash flow growth is essential for growth-oriented companies, allowing them to expand without relying on external funding [6]. - TJX's year-over-year cash flow growth stands at 12.2%, exceeding the industry average of 10.6% [6]. - The company's annualized cash flow growth rate over the past 3-5 years is 7.6%, compared to the industry average of 4.6% [7]. Group 3: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8]. - The current-year earnings estimates for TJX have been revised upward, with the Zacks Consensus Estimate increasing by 0.1% over the past month [8]. Group 4: Overall Positioning - TJX has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, positioning it well for potential outperformance in the market [9][10].

Company Overview - The TJX Companies, which includes T.J. Maxx, Marshalls, and HomeGoods, has experienced significant growth, gaining market share from traditional department stores as consumers increasingly seek value-focused shopping experiences [2] - The company reported a market capitalization of approximately $150 billion, with $56 billion in revenue, $6.5 billion in operating income, and $4.9 billion in net earnings over the last twelve months [2] Earnings Expectations - TJX is set to announce its fiscal first-quarter earnings on May 21, 2025, with analysts predicting earnings of 91 cents per share on revenue of $13 billion, reflecting a 2% decrease in earnings year-over-year and a 4% increase in sales compared to the previous year's figures [1] - Historically, TJX stock has risen 70% of the time after earnings announcements, with a median one-day increase of 3.8% and a maximum observed rise of 7% [1][6] Market Trends - The ongoing inflation, high interest rates, and uncertain economic outlook have further propelled the company's growth as consumers prioritize value [2] - The company has indicated that imports from China represent only a minor segment of its supply chain, potentially mitigating specific trade-related risks [2]

Company Performance - TJX closed at $130.82, reflecting a -0.51% change from the previous day, underperforming the S&P 500's gain of 0.73% [1] - Over the past month, TJX shares gained 0.68%, lagging behind the Retail-Wholesale sector's gain of 9.91% and the S&P 500's gain of 9.07% [1] Upcoming Financial Results - TJX is set to announce its earnings on May 21, 2025, with an expected EPS of $0.90, down 3.23% from the prior-year quarter [2] - The consensus estimate for revenue is $12.97 billion, indicating a 3.94% increase compared to the same quarter of the previous year [2] Annual Estimates - For the annual period, the Zacks Consensus Estimates project earnings of $4.43 per share and revenue of $58.75 billion, reflecting increases of +3.99% and +4.24% respectively from the last year [3] Analyst Estimates - Recent modifications to analyst estimates for TJX reflect shifting short-term business dynamics, with positive revisions indicating analysts' confidence in the company's performance [4] - The Zacks Rank system, which incorporates estimate changes, provides actionable ratings, with TJX currently holding a Zacks Rank of 2 (Buy) [5][6] Valuation Metrics - TJX has a Forward P/E ratio of 29.67, which is higher than the industry average of 22.19, suggesting that TJX is trading at a premium [7] - The company has a PEG ratio of 3.27, compared to the Retail - Discount Stores industry's average PEG ratio of 2.62, indicating a higher valuation relative to expected earnings growth [8] Industry Ranking - The Retail - Discount Stores industry, part of the Retail-Wholesale sector, has a Zacks Industry Rank of 75, placing it in the top 31% of over 250 industries [8]

Company Performance - TJX's stock closed at $125.71, reflecting a +1.4% change from the previous day, underperforming compared to the S&P 500's gain of 2.51% [1] - Over the past month, TJX shares increased by 3.66%, outperforming the Retail-Wholesale sector, which declined by 6.97%, and the S&P 500, which fell by 8.86% [1] Upcoming Earnings - The upcoming EPS for TJX is projected at $0.90, indicating a 3.23% decrease from the same quarter last year [2] - Revenue is expected to reach $12.97 billion, representing a 3.94% increase compared to the corresponding quarter of the previous year [2] Annual Estimates - For the annual period, earnings are anticipated to be $4.43 per share, with revenue projected at $58.75 billion, reflecting increases of +3.99% and +4.24% respectively from the previous year [3] - Changes in analyst projections for TJX are important indicators of business trends, with positive revisions suggesting a favorable outlook [3] Valuation Metrics - TJX has a Forward P/E ratio of 27.98, which is higher than the industry average of 21.15 [5] - The company also has a PEG ratio of 3.08, compared to the Retail - Discount Stores industry's average PEG ratio of 2.64 [6] Industry Context - The Retail - Discount Stores industry is part of the Retail-Wholesale sector, holding a Zacks Industry Rank of 164, placing it in the bottom 34% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]