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In the latest trading session, TJX (TJX) closed at $64.64, marking a +0.45% move from the previous day. This move outpaced the S&P 500’s daily gain of 0.34%.

Prior to today’s trading, shares of the parent of T.J. Maxx, Marshalls and other stores had lost 8.61% over the past month. This has lagged the Retail-Wholesale sector’s loss of 1.38% and the S&P 500’s loss of 0.12% in that time.

TJX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $0.82, up 15.49% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $12.26 billion, up 21.19% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $2.99 per share and revenue of $48.18 billion, which would represent changes of +864.52% and +49.93%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TJX. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.63% higher. TJX is holding a Zacks Rank of #1 (Strong Buy) right now.

Investors should also note TJX’s current valuation metrics, including its Forward P/E ratio of 21.53. For comparison, its industry has an average Forward P/E of 21.18, which means TJX is trading at a premium to the group.

Investors should also note that TJX has a PEG ratio of 2.05 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Retail – Discount Stores stocks are, on average, holding a PEG ratio of 2.05 based on yesterday’s closing prices.

The Retail – Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 112, which puts it in the top 45% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow TJX in the coming trading sessions, be sure to utilize Zacks.com.

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